Personal Trading Plan For Beginners By Experts

Trading Plan For Beginners: expert Opinion

We asked trading expert Kim Krompass from the Price Action Institute to review this trading plan for beginners, check for errors and change improvements. A good trading plan requires critical thinking and an extra pair of eyes so that it can grow into something that is always profitable.

First, we will show you the plan that we have developed. After that, you will see Kim’s comments. Please also share this article via social media and leave your own comments about my Forex trading plan for beginners in the comments section.

Core values: Mission statement

In your mission statement, you would like to describe in detail the purpose of your trade as follows:

This concise statement serves as a constant reminder to me and ensures that I remain firm in my vision. This will help your trading plan to fulfill a purpose. If you are only trading to make more money quickly, this may not be enough to make you a successful trader.

Basic Components Of The Plan:

It is important to know yourself and know what you want to get out of your trade.

Take a minute to list your strengths and weaknesses. Be honest, but do not get too involved in this, there is always room for improvement. This will help you understand where you stand and where you want to go.

Also, do not forget to set your goals. Make a simple list of achievable goals in bite-sized size. And remember that these can always be customized when you finish one.

Do not make kilometer-long lists, if you specify too many here, you will probably be overwhelmed, write down a few points for each topic, and then move on. Add a maximum of three.

Strengthen:

My strength is my ability to read charts and apply technical analysis to understand market sentiment.

Weakness:

My weakness is to constantly follow the plan and maintain the discipline I need to implement my strategy.

Targets:

• The profit target is a return on investment of 10% in the first quarter of 20xx.
• To Follow The Trading Plan.
• To conduct quarterly reviews of my plan.

Understanding their basic components will allow you to constantly improve and re-evaluate your trading strategy and ultimately make you a better trader. Remember, it takes time!

Strategy:

Now it’s time for strategy! This is the part that everyone wants to get to. Do not forget to apply the other elements, the strategy is good and useful, but to be successful, you need to be a complete trader who understands all the components.

Step 1: daily process

Developing the best and most successful trading strategy is a process, and I will go through the same process in the same way every day before making a trade. I will continue to use the same process until I intentionally change it based on the data I collect from a consistent negotiation process

I will negotiate from Monday to Friday from 8: 00 to 8: 30 I will spend 30 minutes a day 5 days a week on negotiations, I will look at the weekly and daily deadlines. I want to hold transactions for 3 days up to 3 months. With a target of 300 to 1000 pips and a risk/reward ratio of at least 1 to 1.

Let’s move on, I’ll explain the strategy. Remember that this is the same step-by-step process that I will apply every day. This will be a simple strategy as I only trade for 30 minutes a day.

Step 2: Technical analysis

My strategy will use weekly and daily charts to identify the trend. I will use a trending online trading strategy to determine the direction of the trend I am trading.

Once I find a good trend, I will use the support and resistance levels to find a potential entry area. I will also check the Fibonacci levels for confirmation. I will also be looking for price action patterns and candlesticks like pins and devouring candles to plan my entry.

Step 3: Fundamental Analysis

I will check the news daily for trading advantages and write some notes about where I believe the basics tell me that the instrument will go. Fundamental analysis is the key, but be careful not to go down a rabbit hole, but stick to a few sources that give a general feeling.

Step 4: Plan the Trade

Once everything is aligned, I will start uncovering the actual trading. I will set an entry order or a market order in the place where I want to enter trading. If you don’t have a good entry-level plan, you will fail.

Risk:

I am looking for a minimum risk-reward ratio of 1 to 1 for my trades with a goal of 3 rewards for one risk. Since these trades have a long period of time and will take some time, I risk up to 5% per trade. That is, my business goal is 15%

With a target of 15%, this means that if I win a trade by reaching my target, I have already reached my profit target for the quarter. I will be ready to add positions to trading. I will add whether the price is moving in my favor or to my disadvantage.