Trading Forex – Strategy Plan
Essay title: Trading Forex – Strategy Plan
TRADING FOREX
STRATEGY PLAN
Set your Goal
What do you want out of trading Forex? Is it for business, personal income, or additional income? What ever the reason is, always a good idea to set a goal and standard policy of how much would you like to make per day and also how much are you willing to lose on that day if things did not go your way.
I consider Forex trading as my business. I started this business with my hard earned money and I am going to do all that I can to succeed and stay in that business.
First, I set a goal of my monthly earnings. For example: My goal is to make $400 per day, that’s 40 pips using $10 lot. Is that impossible? NO. Is it difficult to achieve at times? YES; however, as long as at the end of month total equals my set goal of $8000. There will be days you might profit 10 pips and days you might profit 60 pips, not considering the days that you might lose and have to make it up. A successful trader is determined to make profit than loses. Always
looking for a better way to stay in business; study the market, look for different strategy to succeed.
If you are not up to the challenge and do not have the time then my recommendation is to stay out until you are ready.
Before Trading
Organize your trading materials at least one (1) hour before trading.
The best times to trade are Euro open session at 2:00 AM, London open session at 3:00 AM, New York open session at 8:30 AM, and Tokyo open session at 7:00 PM. My favorites are 3:00 AM, 4:30 AM, 8:30 AM and 10:00 AM. Normally it takes 15 to 30 minutes to make a trade, other times longer.
Maximum trading benefits (30+ pips)
Between 2:00 AM – 3:00 AM (Euro EUR)
Between 3:00 AM – 4:00 AM (Euro EUR & Pound GBP)
Between 8:30 AM – 9:00 AM (Dollar USD)
Between 10:00 AM – 11:00 AM (Dollar USD, see calendar first for any good upcoming reports)
Between 7:00 PM – 8:30 PM (Yen JPY and New Zealand Dollar NZD)
“Time in Eastern Standard Time (EST)”
My favorites are 3:00 AM, 4:30 AM, 8:30 AM and 10:00 AM. Normally it takes 15 to 30 minutes to make a trade, other times longer. If you miss any of the times then wait for the next one or you may do small trades if the market is moving, small trades at 5 pip limit per trade. Although I do not recommend that strategy where it is time consuming. The idea is to make good profit as little time as possible.
Get Ready
You must be focus when trading Forex or you have to face the consequences of losing your equity. If you are tired and unable to function then it is best for you to stay out until you are fresh and ready. You must set the time for trading and nothing else. This is your business, treat it well and it will take care of you in the future.
Be presentable for the job and avoid any distractions
See up-coming events for the day to determine what currency pair to trade and what times
Calculate Pivot Points and plug them into the 15 minute chart
Look up charts (Daily for past six (6) month, hourly for past ten (10) days, and fifteen (15) minutes for past 3 days) to project trend direction up or down
Set your Entry (profit of 10-20 pips) and Exit (loss maximum of 30-40 pips). If it is a major event day, you may need to pre-order your tradings prior to announcements.
Financial Risk Management
You will hear from many different people how risky trading Forex is; and it is if you do not know what you are doing. If you guess all the time, close your eyes and point your finger to the screen for possible trend direction, then you are