#538: 7 Points to Help Develop Your Own Trading Plan

7 Points to Help Develop Your Own Trading Plan



Podcast:

Signup For my Forex Masterclass Find out more about Blueberry Markets – Click Here Find out more about my Online Video Forex Course Book a Call with Andrew or one of his team now Click Here to Watch Prop Firm Masterclass #538: 7 Points to Help Develop Your Own Trading Plan

In this video:
00:25 – 7 points to help develop your own trading plan.
00:36 – #1 Your personality.
01:15 – #2 What type of trading do you like?
02:16 – #3 What are your goals?
02:55 – #4 Risk management.
03:51 – #5 Know your strategy.
05:16 – #6 Demo, live or a prop firm?
05:50 – #7 Journal and record your trades.
07:10 – Attend my Forex Masterclass.
07:19 – Prop firm Masterclass.
07:40 – Book a call to chat with us.
07:52 – Blueberry Markets.

Today. I’m going to give you some helpful tips and information to help you to develop your own trading plan as a forex trader. Let’s get into that and more. Right now.

Hey there, Traders! Andrew here at the Forex Trading Coach with video and podcast number 538.

7 points to help develop your own trading plan.

Today is all about developing a trading plan that’s going to work for you. I’m going to give you seven points. That’s going to be something that if you put this together. Massively help you.

#1 Your personality.

Let’s start with point number one. So first of all, you have to understand yourself. What type of person are you? What personality do you have? What what makes you tick? You know what you like as a trader. Now, I find that naturally most people, when they start trading and I did exactly the same almost 20 years ago myself. They tend to navigate through to the shorter timeframe charts, the one minute, five minute, 15 minute chart.

Some people think that’s the where the most opportunities are, where the most money is to be made, and that’s why people do that. And then they realize that probably doesn’t work quite as well as they thought it might do. And then they start to look at something a little bit longer timeframe charts.

#2 What type of trading do you like?

So figure out where you are on your trading journey and what type of trader you are. Are you someone that likes to watch the news? I’m someone that likes to watch the charts. Are you a fundamental or technical trader? And then what you need to do there is work out the trading style and that will become, you know, in the cooperation of both of those two. Possibly it could be, you know, looking at the longer timeframe charts, this sort of more medium timeframe or the shorter timeframe.

So look at what works for you. If you’re out there, you know, you’ve got family, you’ve got travel to do, you’ve got work to do, you’ve got music, sport, whatever it might be, you might go, Well, you know what the reality is? I only want to look at my charts maybe just once a day or a couple of times a day or just a few times a week.

Therefore you’re going to have to go to those longer timeframe charts. You may go, Well, you know, I’ve got a couple of hours. I can look at the European session or the US session a few days a week, and therefore I might look at say, the 30 minute, the one hour, the four hour timeframe charts or blend whatever works for you.

#3 What are your goals?

The next thing you need to do is define your goals, your personal goals, your financial goals, the time goals as well. Don’t forget, time is really important. You know, it’s all well and good to write down. Say I’m going to make 10% every month and I’m going to do this and I want to do that. But also is you got to realize that to do this successfully and properly, it’s got to work around what your time restrictions are. Everybody has time restrictions. We all have 24 hours in a day. It’s what you do within that day that counts. So how much of that time per day or per week do you want to dedicate to learning or trading or studying charts or watching news events? You’ve got to understand that.

#4 Risk management.

The next you have to understand is risk management. It doesn’t matter what strategy you have if you don’t get your risk management correct, then it’s going to blow your account. It just is. You have to understand risk management is one of the most important, probably one of the most boring, but one of the most important parts of any trade management plan that you put together. As you know, if you’ve been following me, I work on a percentage risk.

I never look at Pips. To me they’re completely irrelevant and a waste of time. Look at a percentage risk. Because if I risk half of 1% of my account on a trade and it happens to be a $10,000 account, I could do exactly the same on $1,000,000 account or a prop firm account. It doesn’t matter. It’s the risk keeping that low and controlled on every single trade is really important for me.

And also, you’ve have heard me say this keeping your reward to risk high on every single trade.

#5 Know your strategy.

Which then moves into the next section, which is your actual strategy itself. Point number five. What is your strategy? Giving you an edge, You know, how is it doing that? What is it that you’re looking for to determine a new trade where your entry and exit rules and criteria you already know now your risk is going to be low and controlled on every trade if you trade the way I do.

But what is it that is going to say, “Hey, this is a trade sitting up here?” Where are you instantly going to know to put your stop loss or your profit target? You can’t be making it up on the go. You have to know these things in advance. You have to know when to look at your charts. You have to know what pairs to look at, what time of day or night, depending on where you live in the world.

And again, where you live in the world will determine what type of strategy you have. Because, you know, if you have a strategy that say, let’s say worked in the US session and you live, say here in New Zealand, well that’s two or 3:00 in the morning and we’re very lucky that we have a strategy that can be traded from anywhere in the world.

And we’ve got clients at 104 countries or trading extremely well. But not everybody is lucky enough to have a strategy like that. So you’ve got to bear that in mind as well. If you’re a news trader and you say, Well, I have to trade the European news, well, that could be 3:00 in the morning if you live in certain parts of the state.

So you have to get these things sorted out. That works for you.

#6 Demo, live or a prop firm?

The next thing is, once you have a strategy that works, how are you going to trade that? Are you going to start on demo, live, small live account, large live account, trade for other people, family, friends, prop firms, possibly. You have to have this as a plan in advance.

You know, earlier we talked about goals and financial goals for how you’re going to get to these goals. You know, do you need a $10,000 account? Do you need a $100,000 account? Do you need several prop them accounts or working to get to these goals? So you have to write this down and have a structure and a plan in place.

#7 Journal and record your trades.

And lastly, performance and journaling these things, you know, not every performance is going to be a perfect equal and equity curve. Not every month you’re going to have the exact same profit. Of course, you know, some months or weeks are going to have losing and time periods as well. So you have to take that into account. What’s the biggest drawdown you can afford to take if you do any backtesting?

What’s the biggest historical drawdown that you’ve seen in maybe the last five or ten years if you are going backtesting? How reliable was that data and is it credible information? And do you have backtesting data on enough currency pairs to justify making that backtesting information valid So it will help you going forward Journaling your trades. What are you going to do to journal trades and say, you know exactly when you took the trade, why you took the trade, what time frame you took the trade on?

Do you have a picture of what it looks like when you took the trade and you made those decisions? Do you also have a picture of a screenshot of how the trade developed and anything you could have done realistically to improve that trade? And that is another thing. Part of your strategy. Do you like to interfere with trades or do you like set and forget all these things you need to have well and truly documented and journaled upfront, clearing your mind to know exactly what you’re doing.

Attend my Forex Masterclass.

Now, we can certainly help you with that. Now, if you’ve not been on my masterclass, I can highly recommend that tells you all about how we trade what we do and how we can help you.

Prop firm Masterclass.

I’ve also had a masterclass, a one hour session with the Five Percenters, the well-known prop firm I’m going to put a link to them on this video and podcast post here. I highly recommend that you look at that if you want to get into prop firm trading and understand the best strategy and risk in that as well.

Book a call to chat with us.

If you’d like to book a call with either myself or one of my team I put a linked to a booking calendar. So you can book up a 30-40 minute session and discuss your trading and your goals and how we can help you.

Blueberry Markets.

And if you’re looking for a very high quality forex broker that offers the MT4/MT5 platform, I can highly recommend Blueberry Markets in Australia.

I hope that helps. Don’t forget to define the rules of your plan. Write these down. Make sure it suits you as a person, as a trader, as your strategy is your risk management, your goals.

Everything we’ve talked about, write it down and make it work for you. If you need any help, please do reach out and email me personally. Andrew@TheForexTradingCoach.com. Don’t forget to like and leave a comment. If you’d like me to answer any questions that you have and I see this time next week. Bye for now!

Episode Title: #538: 7 Points to Help Develop Your Own Trading Plan Signup For my Forex Masterclass Find out more about Blueberry Markets – Click Here Find out more about my Online Video Forex Course Book a Call with Andrew or one of his team now Click Here to Watch Prop Firm Masterclass