How every forex trader can develop and stick to a profitable forex trading plan ~ free forex trading demo software
This article aims at showing why forex traders should create a strong forex trading plan and why they should stick to that forex trading plan even in periods of loses so long as their win- loss ratio still keeps them profitable.
Deviating from a well laid out forex trading plan is one of the many mistakes that forex traders make soon after funding a live forex trading account. A forex trader opens himself to external influence when every promise he has made to himself prior to funding the forex account becomes a forgotten footnote in his forex trading diary. Nothing is wrong with external influence, but as a forex trader the best influence is the one developed or acquired while still practicing how to trade on a forex demo account or through forex trading contests occasionally held by forex brokers.
For most forex traders, the fading prospects of success immediately after opening a live forex trading account is usually as a result of failing to stick to a forex trading plan. The forex trader ends up captive of the forex markets and sooner rather than later finds himself in that annoying cycle of having to refund the forex trading account. Note that it is difficult for a forex trader to dig himself out of that dark grave of losing trades because the resultant effect of forex loses is the disappearance of faith in any previous strategy that the forex trader has used before. This is the point when most forex traders begin the trial and error tactic on a live account.
Most forex traders who discard their forex trading plans immediately after registering a loss forget that the invincible hand of the forex market implies that no forex trader has a flawless clue as to how the forex market will react in the next minute or days.
Having a forex trading plan can only mean one thing- stepping back and having a longer term view of the forex market. Stepping back lifts a forex trader from the impossible burden associated with a forex trader trying to guess what will happen to the forex market tomorrow or the day after without looking at the general perspective of the markets. Stepping back refers to developing a longer term view in relation to what has been happening in the forex market. That implies scrolling back your forex charts with an aim of finding key market levels. The further behind a forex trader goes when analyzing his forex charts, the further the forex market can provide the forex trader with the possible future outlook.
Planning for a forex trade enables the forex trader to view the forex market through his own eyes so that he is never purely reliant on forex indicators or forex expert advisors. Remember that in the sphere of online forex no one has got your back. Forex indicators and other signals may be marketed as the holy grail but in the real trading world they come with a lot of inadequacies. One disadvantage with such forex systems is that they blind the forex trader from the fact that there will always be days when a forex trader is outmaneuvered by the markets. Forex indicators and signals lack a set of retreating mechanisms that enable a trader to know when he is wrong or even to accept that he is wrong. Once they are blindly incorporated into a forex trader’s trading plan, loses become inevitable. Forex signals do not give the forex trader the opportunity to stay out and watch because they are engineered to always keep the forex trader in a trade. They kill personal market analysis which is a useful component of a forex trading plan.
The most difficult thing about a forex trading plan is not how to make it up but how to stay true to it. You probably don’t remember what your first blue print on how to approach the forex market was because ever since you began live forex trading you have discarded that forex trading plan into the ‘not to do shelf’ or drawer of your forex trading room. Without a forex trading plan a trader will simply be gambling with the forex market and can never last long in the game. Forex trading is not an experimental subject especially when dealing with real money on a live forex trading account. A forex trader must therefore not only develop a forex trading plan but also learn to stick to it even in moments of draw down. The upshort is that every forex trader must plan all the way to the end for it is the only way to stay true to the forex trading goals and expectations.
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