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...
- Currency Pair
- Trend Direction
- Support and Resistance levels
- Entry Point
- Profit target
- Stop Loss
- Keep your leverage (margin) below 5%
Currency Pair - Trade only one pair, and stick to the majors
- Determine the major trend and hop aboard
Support / Resistance
- Know the the important S/R levels for your pair
- Wait for a bounce or pass through of major S/R level
- Be sure there is room for profit before the next S/R level
- 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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