In the Forex world, it is essential to have a winning trading plan to be a successful trader. However, it is necessary to know that a trading plan is not a guarantee of success. Traders in forex make money (forex สร้างรายได้ ,which is the term in thai) by adhering to these tips.
So how to build a winning trading plan?
1) Set Goals – Calculate the profit target. This will indicate whether it is worth taking a trade or not. Set weekly, monthly, and annual earnings goals and reassess them on a regular basis. Generally, traders set profit goals of at least three times the risk.
2) Set the Risk Levels – This is the amount that can be risked in any trade and over the course of a day. It is the amount that, when reached, indicates that it must be stopped. In general, risk levels should be established between 1% and 5% of the portfolio, but the exact amount will depend on risk tolerance and trading style.
3) Establish Exit Rules – Establishing exit rules is as important as establishing purchase signals. If the exit point is reached, it will be necessary to exit. If there has been a loss in that trade, it is okay because limiting the losses, trades can be made another day and will be more likely to make profits in the long term.
4) Establish Entry Rules – You must have the signals established for when trades are made. These signals must be complicated enough to be effective, but not too complicated for us to implement. In fact, you must have a checklist that includes all the signals to enter a trade. When it starts, it will probably be discovered that it takes some time to go through the list, but with practice, this will be much faster.
5) Register all trades – It is necessary to make sure to keep records of all aspects of the operations and keep them detailed with all the trade criteria listed. This will help to look back to see which trades failed or were successful, and this will help adjust the trading plan whenever necessary.