A trading plan is only effective if it's followed. And should be Simple and concise.
A plan will get you to success but if you choose not to have one don’t be surprised when you don't make money.
If you are losing money right now, it could be because you are not keeping a trading journal.
Keeping A Forex Trading Journal
No matter how simple It sounds most traders still don’t follow their plans.
Are you following a Forex trading plan?
There is no coincident that most traders lose money who are not keeping Forex trading journals.
A trading plan should be
A personalized plan for you
A plan that fits your own goals
- And individual lifestyle
Where Can You Get A Forex Trading Journal?
It shouldn't just be a plan your educator gave you and you just filled in the info. You have to edit those and make it comfortable to you. You should add things and taking away things from a journal. This will ultimately help you.
You must develop each component on an individual basis, never losing sight of the fact that it must be custom tailored to YOU. Your trading plan must be made based on reality, not on hope of imaginary gains, but consistency.
If you're simply trying to copy somebody else's trading plan or your plan is based on false pretences, then you will not be successful in following it. Trading plans are intended to be long-term.
How Do I Handle Forex Trading?
Trading should be envisaged as a business. Did you invest in education and an account for nothing (if you did not invest money in education listen to this)? You invested so that you could then become competitive in the markets and survive on your own.
Many traders give up on their trading plan, or often more specifically, the trading system in the trading plan, after suffering a few consecutive losses. Instead, if the plan is right in methodology, it would be better to stick to it and adjust it to make it better.
Every system needs wins and losses to create a better system and every system takes losses, this is a fact for many traders. Trading according to a plan requires sticking through the hard times. This takes discipline, solid discipline.
Traders lacking discipline do not stick to trading plans. Some traders have deeply ingrained psychological issues that will sabotage them. This can be resolved with hard work on one's self. But the trader must be self-aware of such issues first.
You can't figure out a solution if you don't know the root problem.
Find these problems and then work on making them better or gone.