Crafting Your Trading Plan
A trading plan is your personal GPS: it tells you where to trade, when to pull the trigger and, crucially, when to get out. No more seat-of-the-pants decisions - everything is scripted before the market opens.
1. Goals & Style
Why are you trading? Supplement income, build retirement, or pure sport? Pin down specific targets: e.g. “15 % return per year with max 10 % drawdown”.
2. Market Universe
Stick to a handful of pairs you know. Example: EUR/USD, GBP/JPY, XAU/USD. Define your chart timeframe (e.g. 4 H for swing, 1 min for scalping).
3. Entry & Exit Criteria
Be unambiguous: “Buy when 9 EMA crosses above 21 EMA and RSI > 50 at a support zone.” Same clarity for exits: TP at 2 R or MA cross-back; SL below last swing-low.
4. Position Sizing & Max Risk
Cap risk at 1 – 2 % of equity per trade, 6 % per week.
Use the formula: (Acct × Risk %) ÷ (SL pips × pip value).
5. Journaling & Review
Log every trade in Tracom 🚀. End of week, tag winners vs. losers, screenshot setups, and adjust rules if stats drift.
Your 7-Step Daily Checklist ✅
- Scan economic calendar 🎯 - avoid red-flag news against open trades.
- Mark support/resistance on chosen pairs.
- Check trend direction on higher timeframe.
- Wait for your entry trigger (no trigger, no trade!).
- Calculate lot size to fit the 1 % rule.
- Place trade ➜ set SL & TP immediately.
- Log trade details in Tracom, including screenshots & emotion rating.
Copy-Paste Plan Skeleton 📝
# My Forex Trading Plan
## 1. Objectives
• 15 % annual return
• Max 10 % drawdown
## 2. Markets
• EUR/USD, GBP/JPY, XAU/USD
• 4 H swing trades
## 3. Entry Rules
• Bullish trend (50 MA ↑)
• Price at 38 % Fib retrace
• Bullish pin bar
• RSI > 50
## 4. Exit Rules
• TP = 2 × risk (2 R)
• SL = below setup low
## 5. Risk
• 1 % per trade
• 3 concurrent trades max
## 6. Routine
• London open analysis 07:30 GMT
• Review closed trades Friday 18:00 GMT
## 7. Mindset
• Accept SL as tuition, not failure
• No phone trades after 22:00