Forex trading is a high-risk endeavor that may result in both large profits and large losses. A substantial proportion of newbies opt to become traders in order to get rich quickly. This is a blunder! This way of thinking is wrong.
Our difficulty will be to reign in our desires and stick to the plan. Let’s speak about how to prepare for a career as a trader.
How to Make a Strategy, How can you correctly arrange your Forex work?
How do you create a work plan?
Many beginners have one clear objective, to pocket the money, and they want to spit on discipline from the large bell tower, but everything ends tragically.
But we are not like that; we have a certain duty to complete. We will make a trading algorithm, at which point we will halt trading and create a new plan.
Let’s imagine you work at a company and you complete all of your jobs according to a plan, a timetable, and different directions, any violation of which is punishable by a reprimand, a loss of incentives, and so on, all the way up to and including firing.
So, in this case, you create a work plan (algorithm) for a week, month, or year and keep to it. You closely adhere to the strategy; any deviation from the built algorithm results in the drain of the deposit.
Trade within your system or strategy
How to plan your Forex work ahead of the start of the trading week
On weekends, create a modest work plan and money management (MM) plan for the next week, including in detail:
- how much I’m willing to trade;
- the maximum risk that may be tolerated per transaction;
- desired weekly profit expressed as a percentage;
- the maximum amount of transactions permitted, after which I stop trading for the week.
- Consider where your predicted pricing will be on Monday, Tuesday, and so on.
- What actions will you take (purchase or sell) if the price hits specified levels?
- When should I close my losses, and at what percentage will I stop trading for the week?
If you write all of this on a piece of paper and tape it to the display, it will be always in front of your eyes.
That is, you build a chart of the pair for the next week, with several price behavior possibilities, and prepare yourself for it.
Don’t forget to check out the schedule of crucial macroeconomic news for the next week.
Important news, for example, may have a significant impact on the movement of currency pairings.
Try not to join the market before such news has been released.
Prepare a variety of price movement scenarios, including positive and negative signs.
What are the advantages of this?
- you have considered all conceivable options for the week’s happenings;
- There are always points of entrance into the market;
- you understand how much profit to take and when to reduce losses;
- More psychologically stable.
“Everything goes according to plan,” as the saying goes, except for the tilt situation.
Another significant benefit is that you may submit pending orders in accordance with the strategy.
There are only benefits to this method. Make it a rule to only trade using the previously developed algorithm.
Plan your job while keeping your risk management in mind. Join Doughvest Telegram channel for market updates.
This concludes the post. I wish you the best of luck. And keep in mind that a trader’s right and high-quality approach to business is condemned to success.
