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Forex Trading Tools For A Profitable Trade

The Forex trading plan

A plan is important in guiding you through each stage of starting and managing your trades. You’ll use your trading plans like a map or instructions for how to structure, run, and grow your stocks and investments.

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A Forex Trading Plan is one of the most important tools you need if you want to have a successful and long-term trading career. Trading is not a hobby or a past-time. If you are really serious about trading, you must take care of it right away and create goals for you to achieve. Trading is a business and it must be treated that way for you to flourish and succeed.

A trading plan is actually your business plan which you will need to follow consistently, and not change it every day. Consistent action creates consistent results, and the higher the risk the greater the reward

The trading plan must be very simple and clear, including only important information. A lot of traders complicate their task and make long trading plans which they can’t follow. The trading plan should not be more than 1-2 pages long.

Most important things to include in your forex trading plan are the following:

  • Daily trading routine
  • Entry rules
  • Exit rules
  • Money management rules
  • Your trading style
  • Currency pairs, markets you will trade
  • Personal notes, rules, and goals

The Trading plan is your business plan and your daily guide to trading success. Make one and follow it religiously without any excuses. A trading plan is your daily guide to your long-term trading success and after you have achieved your goals, write a new plan to continue your success.

The Forex trading journal

A Trading journal is your personal documentation on your experience which helps you to move your trading in the right direction and get to the next level. If you want to become a consistently profitable trader in the long-term and enjoy the lifestyle that comes with successful trading, you must use the trading journal to document your experiences for future reference. A trading journal can turn a normal trader into a successful one. Profitable forextrading is possible only if you start using and following the forex trading plan and journal.

A trading journal is your personal document with your trades and decisions you have made. It is a document registering your successful and unsuccessful trades and decisions. This allows you to track, learn, and improve your trading performance from your experiences. It helps you remember them more clearly, and if the same problem occurs again, you will know what to do.

When it comes to trading you need to have a disciplined and organized approach to avoid major losses. The trading journal will not be useful if you are not consistent with using it for every single trade you make. Over time, you will see what works best for you and what is giving you the results you want. As traders, you need to focus on yourself and on your own trading. Cut distractions and focus on yourself and your business. In doing so, you will become more aware of what to do and the choices you are going to make.

How did traders achieve good results?

All successful traders started somewhere. They wanted to be where they are today, and to achieve this, they exchanged their bad trading habits for winning ones.

Journal writing will help you solve your problems more easily. Just like talking to a friend about your problems, writing in your journal helps reduce stress and provides relief. Writing in a journal helps clarify the problems in your own mind and allows you to concentrate on finding a required solution.

Traders traded with patience, discipline, and learned from their successes and losses. They used their experience as an opportunity to be a better trader in every trade they make.

In your journal, you can add pictures of your entries, management, and exits of each trade you make. You may also add a few comments and notes. It does not take you a lot of time, so laziness should not be the excuse, all you need is a notebook and a pen for you to start your journal to help you be a better trader.

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