Why is a Trading Plan Necessary?

ARTICLE SERIES : YOUR TRADING BUSINESS IS YOUR TRADING PLAN

Why is a Trading Plan Necessary?

This article is the first in a series that addresses building your trading business. Whether you are a new or advanced forex trader, this series will set you up for success! When I speak of setting up a trading business, I am specifically referring to you building your trading plan.

There is one thing I can guarantee you. If you do not have a well defined, step by step, progressive trading plan ( which is essentially your business plan as a trader) then success will become that phantom you seem to see but can never catch.

That, my trading friend, is the single most important reason that you need a trading plan. If you are still reading this article then you have completed step one which is the realization that you need a trading plan because it is directly correlated with your success as a trader. A well thought through and documented trading plan is your road map to profitability and forces you to:

• Identify yourself as a trader (scalper, intraday, swing, or long term investor)
• Identify specifically what you will trade ( currency pairs, etc)
• Set clear, achievable, measurable goals
• Identify your risk and your reward perimeters
• Set a clear set of rules
• Consistently reevaluate your performance

As we continue through the series of developing a bullet-proof business plan it will be helpful to follow along by downloading the FxST Business Plan Template by clicking the image below!

Watch for my next article in this series:

Writing your one page trading plan.

 

Profitable trading to all!

Debbie Badawi

FxST Education Specialist

Join Us Facebook!

Author Bio

Dr. Debbie Badawi’s formal education, training, and career is in the field of education. Ten years ago, upon an early retirement, she entered the world of trading equities and then found her passion in day trading and swing trading the Forex Market. Although she trades various currency pairs, she spends much of her trading focus on the EUR/USD. In addition to trading, Debbie mentors other traders, works with the team at FXST, and runs her educational consulting business where parents find educational solutions for their children. When asked what’s next or what’s Debbie’s future? Debbie smiles and precisely says, “ a simple life comforted by a six figure income and a financially free retirement.”

 

 

facebook comments:

to “Why is a Trading Plan Necessary?”

  • Brian on June 23, 2015

    Good advice. The definition of the trading plan and a trading journal are some of the best tools for beginners.

Leave a Reply

Your email address will not be published. Required fields are marked *

Hide me
Sign up below For Our Exclusive Live Trading Demonstration!
First Name * Email *
Show me
Real Time Web Analytics