Price Action from Nyala Fuller
How to create your own trading plan
I
found that most traders do not have a trading plan, they do not know how
him to do, or it is too difficult for them. Therefore, in today's lesson I
I want you to understand why we need a trading plan, and then give an example
trading plan that you understand how to create your own. Let's start…
What is the trading plan and why is it
need
At first,
trading plan should be seen as a pattern of trade in the market.
Perhaps the best way to describe the trading plan in the form of a checklist.
This checklist should comprise every aspect trade logical step
by-step sequence, and will act as a trade management
On the market. In fact, in the commercial terms will indicate your short- and long-term
trade objectives, and will give you a clear list of questions to test how their
to achieve.
Note: Do not think that your check
sheet / trading plan should be extremely long and detailed. After
you will learn an effective trading strategy, such as Price Action, you will be able to combine all aspects of
your trading method in short form. Having done it once, you will have a check
sheet / trading plan, which will open the leadership deal or not.
Checklist can contain text and pictures, I'll show you an example below.
Cause
which you need to have a trading plan it is that you have to be
sure that trade is not based on emotion. Trading can be highly
emotional exercise, and if you follow the objectively constructed
trading plan, which defines all your actions on the market, you will almost
certainly become emotional trader, also known as Trader
losing money.
Maybe,
the most beneficial thing that makes shopping a plan for you, is that it
It keeps you away from the uncertainty in the market. This naturally reduces the
the number of losing trades that will improve the overall percentage of winning
transactions. Many traders will eventually "run and shoot" in the markets in place
In order to learn to trade like a sniper, and the reason why they are doing it in
that can not set aside time to create your own effective trading
plan. I'm telling you right now, the quickest way to increase your profits,
is to trade less frequently and with great quality. trading plan
naturally help us in this endeavor, and now let's see
on the various components of an effective trading plan:
Components of a trading plan on market
it
the necessary components of a trading plan, you can add something if you want,
but do not get too carried away, so that your plan does not become too long and complicated.
·
Start
your trading plan with positive affirmations that will read aloud;
·
specify
your short- and long-term objectives in trade in the markets;
·
Determine
your trading strategy, all aspects of how you analyze and trade;
·
Determine
Your money management strategy which includes such things as the ratio
risk and return, a real profit margin in the current situation, how much
I can lose in a single trade, what is my strategy with respect to withdrawals,
merchant account, how much I'll shoot every month, after going to
trade profitably.
·
Various
commerce components that must be checked, such as the basic currency
pair, trading hours, news, etc .;
·
Twice
all check before opening the transaction, and ask yourself: "This transaction is open,
because I thought that if you do not fool
bargaining, or because I was considering a deal for an hour and found an excuse
transactions in 20 different sites on the Forex? ";
·
Complete
trading plan / checklist another positive statement.
An example of a trading plan
(Note: this is a hypothetical plan - drafted
arbitrary, but you can use it to create your own
plan. It's not part of my personal plan, but they represent my structure
trading plan. You may want to add other components
checklist, as it is only a general example might look like
trading plan.)
trading plan
--Installation trade:
"I never
I will not enter into a transaction without first checking with the trading plan, as
trading plan makes me objective and eliminates the emotion in trading, and this is
that makes me profitable
long term "; "After entering into a deal, I do not change, and do not touch
transaction excludes all emotions and remember their initial observations "; "I
I never traded above the risk threshold, adhering to set the amount of risk in
one transaction. "
--Business objectives:
short-term
objectives: to make constant profit every month, complemented by income from my
basic work to be patient and disciplined trader
which follows the plan.
long-term
goal: to bring your account up to the amount of $ 25,000 and above, through a thorough mastery
my trading strategy, patience, and discipline to follow my trading
I plan each time opening deal. To avoid peretorgovyvaniya be
patient, stay disciplined and always adhere to the trade
plan.
--Trading Strategy:
1) Market analysis - market trend or
consolidated? - This is the first thing that
to be determined. You need to determine the main direction of the market and
try to trade in that direction. We look for new highs and peaks
troughs in a growing trend, and new lows valleys and peaks to the downward
trend, as I learn how to use the 8 and 21 day EMA to determine the short-term
market pulse. For the market to consolidate, we look at obvious levels
support / resistance. Therefore, your trading plan, you must have
pictures, as in the example, or similar, in order to remind you that
you need to look for:
2) Identify the main resistance levels and
support and draw them on the chart. - Once you have identified
state of the market: the trend is up, down, consolidation, it is necessary to draw key
support / resistance levels on the chart. They will indicate the zone of interest
market participants, for which you will watch in anticipation setups Price Action in the direction of the main trend, or
in the case of consolidation in the direction of the opposite side of the range.
3) Search setups Price Action formed on
Key levels to make sure that only trade obvious signals. - You need to know exactly what setups Price Action are looking for on the chart before
build your trading plan. Below we can see an example of bearish Pin Bar in
downtrend. You have to be a perfect example of the drawings setups
that you will trade according to your trading plan. It will be you
a reminder of what setups with high probability you are looking for.
-- money management
1) What is the most logical place to
stop placement? What amount I can donate and still feel
quietly? - Remember
it is necessary to calculate the risk of the money, not points or percentage.
2) What is the most logical exit strategy
where to place closed orders? - The ratio of risk / reward 1 to 2
or more seems reasonable achievable in the transaction taking into account market conditions
and the next level?
-- other considerations
1) What currency pairs I consider to
trade? This is the major currency pairs: EURUSD, GBPUSD, AUDUSD, USDJPY, EURJPY, GBPJPY, USDCAD, NZDUSD?
2) In a trading session formed
this setup? It is formed during the London or New -Yorskoy session
which are the most important, or during a quiet Asian session
-- Double check your transaction
Make sure that you trade only
the obvious setups.
Conclusion
I hope,
that you have a better idea how to build your own trading plan as
its structure and what ingredients it should contain. there really is
there is nothing more to tell, but added that the creation and use
your trading plan will allow you to achieve your goals at a much market
faster than without him. You have to believe me and stop trading without
plan. You do not start a business without a business plan is developed on paper
why do you think that you can successfully trade without proper trade business plan.
creating
Once your trading plan, you need to make sure that will really
use and follow it each time interacting with the market. This will
to produce you right shopping habits, such as patience and
discipline, and these are the habits that help you make money in the long
term.
Author
Article: Nial Fuller.
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