The Significance of a Forex Trading Plan - Learn to Trade
Login
Free Forex Signals Join Our Telegram

The Significance of a Forex Trading Plan

Estimated Reading Time: 4 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Michael Fasogbon

Updated:


Probably the most famous saying in the forex market is ‘plan your trade.

Our Forex Signals

image
image

The forex market is one of the largest markets where most traders are making significant profits daily.

 

Eightcap - Regulated Platform With Tight Spreads

Our Rating

Forex Signals - EightCap
  • Minimum deposit of just 250 USD to get lifetime access to all the VIP channels
  • Use our Secure and Encrypted Infrastructure
  • Spreads from 0.0 pips on Raw Accounts
  • Trade on the Award-Winning MT4 & MT5 Platforms
  • Multi-jurisdictional Regulation
  • No Commission Trading on Standard Accounts
Forex Signals - EightCap
71% of retail investor accounts lose money when trading CFDs with this provider.
Visit eightcap Now

 

If you want to be successful in forex trading, you need to plan.

However, if you dive head into the forex market without making any preparations, chances that you’ll succeed are minimal.

Sort By

3 Providers that match your filters

Payment methods

Trading platforms

Regulated by

Support

Min.Deposit

$ 1

Leverage max

1

Currency Pairs

1+

Classification

1or more

Mobile App

1or more
Recommended

Rating

Total cost

$ 0 Commission 3.5

Mobile App
10/10

Min.Deposit

$100

Spread min.

Variables pips

Leverage max

100

Currency Pairs

40

Trading platforms

Demo
Webtrader
Mt4
MT5

Funding Methods

Bank Transfer Credit Card Giropay Neteller Paypal Sepa Transfer Skrill

Regulated by

FCA

What you can trade

Forex

Indices

Actions

Cryptocurrencies

Raw Materials

Average spread

EUR/GBP

-

EUR/USD

-

EUR/JPY

0.3

EUR/CHF

0.2

GBP/USD

0.0

GBP/JPY

0.1

GBP/CHF

0.3

USD/JPY

0.0

USD/CHF

0.2

CHF/JPY

0.3

Additional Fee

Continuous rate

Variables

Conversión

Variables pips

Regulation

Yes

FCA

No

CYSEC

No

ASIC

No

CFTC

No

NFA

No

BAFIN

No

CMA

No

SCB

No

DFSA

No

CBFSAI

No

BVIFSC

No

FSCA

No

FSA

No

FFAJ

No

ADGM

No

FRSA

71% of retail investor accounts lose money when trading CFDs with this provider.

Rating

Total cost

$ 0 Commission 0

Mobile App
10/10

Min.Deposit

$100

Spread min.

- pips

Leverage max

400

Currency Pairs

50

Trading platforms

Demo
Webtrader
Mt4
MT5
Avasocial
Ava Options

Funding Methods

Bank Transfer Credit Card Neteller Skrill

Regulated by

CYSECASICCBFSAIBVIFSCFSCAFSAFFAJADGMFRSA

What you can trade

Forex

Indices

Actions

Cryptocurrencies

Raw Materials

Etfs

Average spread

EUR/GBP

1

EUR/USD

0.9

EUR/JPY

1

EUR/CHF

1

GBP/USD

1

GBP/JPY

1

GBP/CHF

1

USD/JPY

1

USD/CHF

1

CHF/JPY

1

Additional Fee

Continuous rate

-

Conversión

- pips

Regulation

No

FCA

Yes

CYSEC

Yes

ASIC

No

CFTC

No

NFA

No

BAFIN

No

CMA

No

SCB

No

DFSA

Yes

CBFSAI

Yes

BVIFSC

Yes

FSCA

Yes

FSA

Yes

FFAJ

Yes

ADGM

Yes

FRSA

71% of retail investor accounts lose money when trading CFDs with this provider.

Rating

Total cost

$ 0 Commission 0.1

Mobile App
10/10

Min.Deposit

$50

Spread min.

- pips

Leverage max

500

Currency Pairs

40

Trading platforms

Demo
Webtrader
Mt4
STP/DMA
MT5

Funding Methods

Bank Transfer Credit Card Neteller Skrill

What you can trade

Forex

Indices

Actions

Raw Materials

Average spread

EUR/GBP

-

EUR/USD

-

EUR/JPY

-

EUR/CHF

-

GBP/USD

-

GBP/JPY

-

GBP/CHF

-

USD/JPY

-

USD/CHF

-

CHF/JPY

-

Additional Fee

Continuous rate

-

Conversión

- pips

Regulation

No

FCA

No

CYSEC

No

ASIC

No

CFTC

No

NFA

No

BAFIN

No

CMA

No

SCB

No

DFSA

No

CBFSAI

No

BVIFSC

No

FSCA

No

FSA

No

FFAJ

No

ADGM

No

FRSA

71% of retail investor accounts lose money when trading CFDs with this provider.

The forex market requires that you know precisely your aim, what you’re looking for, and a plan of how to achieve the goals.

Forex Trading Plan

A trading plan simply makes trading simpler, unlike when you decide to trade without one.

It’s like having a trading GPS to show where you currently sit as a trader and guide you to your destination- making consistent profits.

How to come up with a Trading Plan

Forex trading requires several decisions which most of them impact your profits and losses.

It helps you to form a trading strategy, and its complexity depends on you. However, the best trading plan is one that’s simple and easy to follow.

So, what does the best trading plan contain?

A good trading plan should have the following elements:

  • Management of positions
  • Financial goals
  • An objective criterion that a trader will choose, enter as well as exit trades
  • The sizes of positions as well as the manner of determining them
  • Trading adjustment regarding the change in the market conditions

Furthermore, a good trading plan includes simple technical indicators which guide the trader.

The indicators help a trader to enter into buying and selling positions in the forex market.

Stick to the Trading Plan

Having a good forex trading plan is one thing, and sticking to the plan is another thing.

Most traders come up with the best trading plans but unfortunately fail to stick to their plans.

It’s essential to stick to your forex trading plan to help realize the financial goals.

In most cases, emotions of greed usually are the main reasons as to why traders decide to bypass their trading plans.

Therefore, to avoid disaster loses; follow all the instructions in the plan all the time.

Remember a trading plan is there to protect you by minimizing losses but maximize profits.

Ensure that you’re always disciplined in the forex market to achieve the success intended.

Benefits of a Forex Trading Plan

The first thing that a trading plan provides is the destination of a trader in the forex market.

Everything may look easy when working with a demo account, but getting into real-money, things can get messy if you don’t have a trading plan.

Furthermore, a trading plan helps a trader to make quick and precise decisions with maximum returns in situations of a fast-moving forex market.

Also, with a trading plan, one can trade objectively as per what is stated in the plan.

Therefore, with time, a trader gets confidence, and emotions get lower hence improving the trading experience.

Apparently, the worst enemy in the forex market is emotion. Universal emotions include greed, fear, and hope.

Forex Trading Plan

They all cause trouble when trading, but with a proper trading plan, it helps a trader to stay off the emotions and instead follow the objective rules.

Keep a Trading Journal

Another useful grading tool is maintaining a trading journal. A trading journal on a daily basis helps any trader to improve their trading skills.

Besides, trading history aids a trader to study the past that resulted in loses and then determines how to better their trades.

It helps a trader to decide what to repeat and what to avoid going forward.

 

AvaTrade - Established Broker With Commission-Free Trades

Our Rating

  • Minimum deposit of just 250 USD to get lifetime access to all the VIP channels
  • Awarded Best Global MT4 Forex Broker
  • Pay 0% on all CFD instruments
  • Thousands of CFD assets to trade
  • Leverage facilities available
  • Instantly deposit funds with a debit/credit card
71% of retail investor accounts lose money when trading CFDs with this provider.

 

The Bottom Line

Obviously, a forex trading plan is not a guarantee for success, but one thing for sure, a trading plan that’s followed helps a trader to be in the game longer.

Besides, it’s better to survive than to fail, hence having a trading plan, especially newbie traders, should be the first step.

Don’t take chances. Have a good forex trading plan.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News