How To Trade Forex Effectively

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How To Trade Forex Effectively along with a sample plan, some notes and references.

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How To Trade Forex Effectively:

How To Trade Forex Effectively If you are serious about trading FOREX you must treat it like a business. All businesses have a plan, so this is the first thing you need to do in order to trade effectively. A plan does not need to be detailed to begin with. An example of a trading plan follows:

A Sample Trading Plan:

A Sample Trading Plan Check the news for any economic releases that might impact your trading. The Forex Factory is a well respected source for forex economic news. Set your goal for the week or month (for example “I want to make 100 pips a week). I don’t suggest a goal per day because you might have a losing streak for a day or two, possibly more. A week is more reasonable. I also suggest you do not set a goal in terms of money, define the goal in pips because pip count is a better reference as to if you are profitable or not. Decide what pairs you plan to trade for the day (and or if relevant what week) Open up the currency pairs you intend to trade on your platform, and apply whatever indicators you use. Reference the charts on all 5 timeframes, and decide where and when you intend to enter the trade, and also when to exit the trade. Then decide what strategy you will trade each pair. with Maybe scalping for EUR/USD and a carry trade for the AUD/JPY. Or perhaps an opportunity on your chart might allow for a swing trade. You have to decide this. An example making a decision to short EUR/USD if the 61.8% Fibonacci Retracement level fails, to take profit at the 50% Fibonacci Retracement level. Decide on your money management (for example will you trade 1% per trade?). How will you decide on where to place your stops (for example just below the daily support level?)

What's next?:

What's next? Once you have your trading plan made you are ready to trade. Stick to the plan. Do not make trades out of boredom or for the sake of being in the market. Keep a journal, and write down why you entered and why you exited the trade. Note the time too so you can reference you trade history. Review this journal, perhaps once a week. Use this to evaluate your performance and profitability.

Resources and Notes:

Resources and Notes Clearly not everyone will use the sample trading plan. You should customize the plan to suit you. Remember 90% of forex traders fail because of having no plan and or bad money management. Just treating your forex trading like a business and having a plan will put you in the top 10% of traders. Forex Factory Calendar : www.forexfactory.com/calendar.php CandleForex Blog: www.candleforex.com/blog CandleForex main website: www.candleforex.com As always please feel free to ask questions or contact CandleForex anytime. You can contact CandleForex at info@candleforex.com

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