SanDiegoMagaPede Trading Plan Lesson 5: Make Your Own Trading Plan (edited)

The Forex market is in many ways like a battlefield. There are two sides fighting for control of territory and many of us 'little guys' who are brave enough to jump in the arena are usually fiscally slaughtered quickly. When entering the Forex Battlefield it is proven that you must have a plan to survive. My previous posts help guide you and add to your existing plan. The Last MAJOR peice of the puzzle you need is the one most of you are probably thinking about.

THE TRADING PLAN

A trading plan is a combination of rules that you, the trader, will use to not only survive on the Forex Battlefield but also to thrive!

Now before we go over making your own trading plan, be weary of people trying to SELL YOU theirs. Each trading plan is much like an extension of the person themselves. So when you try someone elses trading plan, you are trying to BE someone else. This on top of the fact that most plans for sell are garbage anyways. The Key to success is to make a trading plan for YOU that fits your personality and your trading style.

Each persons trading plan should be like a fingerprint. Unique to the trader.

Some of you like to scalp and trade fast with INTRA HOURLY TRADES

Some of you are in the middle and trade the INTRA DAY TRADE

Some of you are slower paced and trade the SWING/MULTIPLE DAY or even WEEKLY TRENDS

And what might work with scalping wont work with weekly and vice versa.

So hopefully you can start to see the problem with buying someone elses plan. Its like putting on other peoples clothes. Most of the time it wont fit!

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So what then? If you cant buy it, what should you do?

You should make your own plan. How you ask? Well you break everything down and go from there.

When creating a trading plan you must KNOW exactly when to do the following or know when the following is happening

1 - When to get in a trade

2 - When to get out of a trade

3 - When the market is trending Up

4 - When the market is trending down

5 - When the market is in consolidation

6 - When the market is in a reversal

7 - Which currency pairs you will trade and how they act

So to create a trading plan you must use and try out all sorts of indicators, tools and concepts. Basically try EVERY technical, fundamental and sentiment technique to try to find what will be able to accurately answer these questions

Remember as long as your reward risk is around to 2 to 1 or higher, a 50% accurate trading plan will make you profitable.

When you want to try something out to answer a question you want to 'MANUALLY BACKTEST" as opposed to "using the computer". You are not gonna trade auto matically with the computer and thus should not rely on its word. Just load up an indicator or whatever and scroll to the left and begin to look and see how accurate that model is.

Change the input values of the indicators and see if that helps

You are building something brick by brick. The most important thing to remember when building your trading plan is this THIS IS A TRIAL AND ERROR PROCESS! KEEP TRYING EVEN IF YOUR IDEAS DIDNT WORK.

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This refining of techniques is what you are trying to personally do.

This process takes a long time and will require you to refine it

This might be my last post because it really is the last piece of the puzzle that I can think of.

Hopefully these ideas help you just as much as they helped me.

Good Luck!

SanDiegoMagaPede

Lesson 4: https://www.reddit.com/r/Forex/comments/6r8m9x/sandiegomagapede_trading_plan_lesson_4_emotional/