Your Forex System is Your Trading Plan

Your Forex system, or trading plan, is your road map to profits. Should your trade happen to not go as you intended, it's much easier to handle if you allowed for problems ahead of time.

Here is a list of things your plan needs to cover. You can add more for a more detailed plan, but ensure your system at least includes these subjects...

  • Leverage
  • Currency Pair
  • Trend Direction
  • Support and Resistance levels
  • Entry Point
  • Profit target
  • Stop Loss
Leverage - Keep your leverage (margin) below 5%

Currency Pair - Trade only one pair, and stick to the majors

Trend Direction - Determine the major trend and hop aboard

Support / Resistance - Know the the important S/R levels for your pair

Entry Point - Wait for a bounce or pass through of major S/R level

Profit Target - Be sure there is room for profit before the next S/R level

Stop Loss - Know your max loss and act before it gets hit

These subjects are all explained in more detail on this website. Follow the buttons down the left side of the screen as you build your trading plan.

Failure to include any of these is going to reduce your chances of making money trading Forex. It is a dangerous game to play if you don't fully understand the basics.

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