Elements of a trading plan
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    Elements of a trading plan

    Having of forex plan is one of the important things for the trader that want to make consistent profits from forex market.
    Creating of forex trading plan seem like something of a mystery for many traders.

    What are the important elements of trading plan?
    1.Define your entry: whatever you use to enter with make sure you can define it and that you know what constitutes a high quality or perfect A+ entry from one that is lesser in quality or perhaps a B or C entry.

    2. Determine the risk to reward ratio on any trade setup before entering it. Also, make sure you have a thorough understanding of forex position size.

    3.Adjust the position size on the trade to meet the necessary stop loss distance, never adjust the stop loss to meet a desired position size, as this GREED.

    4.Know your exit strategy is before entering the trade, if you are not exiting on a pre set risk reward set up, than make certain you do not tell yourself that you will just “figure it out” as the trade unfolds, this never works. You are never going to be more objective than when you are not in a trade, therefore this is the best time to plan out all trading parameters.

    5. After the trade is over, make sure your trading plan includes an activity or some mandatory thing that you do after you have exited a trade, whether it was a winner or a loser. The period of time right after a trade is one of the most, if not the most, emotionally sensitive period for traders. Feelings of revenge, frustration, and disappointment can cause you to jump right back into the market on a whim, with no real setup present, obviously this is likely to cause you even further psychological harm because you will likely lose even more money, and the cycle will continue.

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    [lang=id]
    Quote Originally Posted by sameeh View Post
    3.Adjust the position size on the trade to meet the necessary stop loss distance, never adjust the stop loss to meet a desired position size, as this GREED.
    many traders got confusing to set stop loss itself and although they knew the function of stop loss, they need to know the right points that have to note and understand before set and put the stop loss, and also , it was caused by their ability to analyze the market until get the right position,
    long stop loss is not a guarantee for them to hold the position and reach the goals, because the question here is, how good the trader's quality to analyze the market[/lang]

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    Quote Originally Posted by samprazaan View Post
    [lang=id]
    many traders got confusing to set stop loss itself and although they knew the function of stop loss, they need to know the right points that have to note and understand before set and put the stop loss, and also , it was caused by their ability to analyze the market until get the right position,
    long stop loss is not a guarantee for them to hold the position and reach the goals, because the question here is, how good the trader's quality to analyze the market[/lang]
    Indeed a good knowledge about the market analysis can help us to know about the size of our stop loss. It will be better if we will concentrate on our risk and reward ratio. There are many trader's who don't use any stop loss because they think that they will loose money by using stop loss. But in real we should try to find out better entry exit and entry point because you are right a good market analysis can't give you loss all the time

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    Quote Originally Posted by sameeh View Post
    3.Adjust the position size on the trade to meet the necessary stop loss distance, never adjust the stop loss to meet a desired position size, as this GREED.
    Can you explain this point in other words? If all of the points which you mentioned are elements of a trading plan, then what about the element of trading strategiy?, Actually, we all would agree on all points in this topic, because all of that are important points to support our success in making profits consistently.

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    If you lose, be patient. If you win, stay humble

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    Quote Originally Posted by forexlearner View Post
    Indeed a good knowledge about the market analysis can help us to know about the size of our stop loss. It will be better if we will concentrate on our risk and reward ratio. There are many trader's who don't use any stop loss because they think that they will loose money by using stop loss. But in real we should try to find out better entry exit and entry point because you are right a good market analysis can't give you loss all the time
    Yes dear its very essential to check about our risk and reward ratio before entering in this business. We need a good trading practice every day which will help us to know about our strong trading areas and with the help of trading we can use the elements of our trading plan well too. For sure we have to follow a strong trading analysis which will give good profit in average

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    Registered user techboy's Avatar
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    All that are mentioned in these thread is true, but for me the most important element in trading is understanding market psychology,not just read about market psychology you need to absorb and engraved it in your subconscious mind, because to succeed in these market is to have the right mindset and to have the right mindset is to have good understanding on the psychology of the market.

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    " Trading is 70% Psychology, 15% Risk Management and 15% Strategy ! "

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    Quote Originally Posted by techboy View Post
    All that are mentioned in these thread is true, but for me the most important element in trading is understanding market psychology,not just read about market psychology you need to absorb and engraved it in your subconscious mind, because to succeed in these market is to have the right mindset and to have the right mindset is to have good understanding on the psychology of the market.
    so you have understood for almost elements, and now, you need to control the emotion as the final thing to make us good or bad during in the market, and so do i, psychologies became a big problem when we can not control it with good and make all the thing we have learned are nothing

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    Quote Originally Posted by forexlearner View Post
    Indeed a good knowledge about the market analysis can help us to know about the size of our stop loss. It will be better if we will concentrate on our risk and reward ratio. There are many trader's who don't use any stop loss because they think that they will loose money by using stop loss. But in real we should try to find out better entry exit and entry point because you are right a good market analysis can't give you loss all the time
    [lang=id]of course dear friend, it will lead them to trade with RM and MM, they knew what is exactly need to do then can keep good to manage the business, and the important thing for us, we trade with relevant for making profit and always take the safest way,
    stop loss, cut loss and hedging are good thing to help the traders to limit unwanted situation[/lang]

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    Registered user siham.msd's Avatar
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    Yes, I think that the plan for trading and adhere to the status of things were key trade management and organization. It is the most important feature of a successful merchant advantages which outweigh the importance of technical analysis or insight and skill and intelligence. The traders who follow a structured approach are those who continue year after year

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    [lang=ar]I see that these five elements ae very good to adopt in order to form a trading plan . also we may need to add some other elements llike the element of the time in which we enter the market fro beginning . . the element of your self , are you in a clear min to trade or you may delay trading to another time ? like these matters shouldbe taken in consecration[/lang]

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