Best Forex Trading Plan

Best Forex Trading Journal

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What Is The Best Forex Trading Plan?

It’s all about being able to record your results in the most time-efficient and accurate manner that also allows you to learn and adapt from your mistakes.

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Having the best forex trading plan allows you to quickly identify any mistakes and rapidly stop them from happening again.

The difference between a plan and a journal is that a trading plan is used to get you out of bad habits and perform better each time you record data. Whereas a journal you are just keeping track of your trading habits.

As traders, it is important that you understand exactly what you did right or wrong so you can reinforce your trading habits and rules. Thus making you unconsciously competent.

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By reviewing each trade at the end of a trading session, or when you have time within the same day – take notes on what went right, why you entered and why you exited/added positions/move stop loss.

Some reasons may sound repetitive to you, which means you are on the right track to becoming consistently profitable.

You will be able to use these trade reviews to also analyze what went wrong and identify potentially troublesome patterns that you will be able to eradicate with ease.

As part of the best forex trading plan by Alphaex Capital we have included two checklists, a weekly and daily checklist to prepare you for your trading sessions.

Weekly Forex Checklist

You must go through this checklist until you are unconsciously competent and automatically do this by habit. Below is a checklist that must be completed weekly so you can gain a bigger picture view of your traded assets.

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Step 1: Reviewed COT Report?

  • Which currencies are gaining momentum
  • Have they changed net positions? (i.e – net short to net long)
  • Are the net positions getting stronger or weaker?

Step 2: Reviewed Assets Weekly High & Low?

  • Plot the highs and lows of the previous trading week to set a trading range.

Step 3: Updated Trend Analysis?

  • Is the market trending?
  • Has it reversed since last week?

Step 4: Reviewed Any Chart Formations?

  • In the bigger picture is there any chart formations forming/formed to look out for?
  • If so plot them and take note of the neckline levels to watch out for.

Step 5: Reviewed Upcoming High Impact News?

  • What high impact news is being released this week?
  • Is the general consensus expecting better or worst results?

Answer these questions and input them in your trading plan for reference – this will keep your bigger picture view in check whilst you look for trading opportunities.

Daily Forex Checklist

Step 1: Reviewed Upcoming High Impact News?

  • What high impact news is being released today?
  • Is the general consensus expecting better or worst results?
  • Note the release times and avoid trading around these times.

Step 2: Performed Kelly’s Criterion?

  • If you didn’t do this at the end of the last trading session, do this now.
  • Adjust risk/position size accordingly

Step 3: Reviewed Yesterday’s High and Low

  • Plot the highs and lows of the previous trading day to set a trading range.

Step 4: Updated Trend Analysis?

  • Is the market trending?
  • Any areas that are significant to trade?

Step 5: Reviewed Any Chart Formations?

  • In the bigger picture is there any chart formations forming/formed to look out for?
  • If so plot them and take note of the neckline levels to watch out for.

Answer these questions and input them in your forex trading plan for reference – this will keep your bigger picture view in check whilst you look for trading opportunities.

How To Use The Best Forex Trading Plan?

Each month, you will review and compile a table of all of our trades for your trading plan.

You will then rank each asset based on performance and PnL. This allows you to reflect on which assets you performed in and underperformed in.

When you review each trade at the end of the month, treat it like a self-assessment.

Best Forex Trading Plan PnL Table | Free Forex Course

You can capture the above information from your MT4 platform’s own data.

For each trade you spot, you will update the trading pages individually. This is done by entering the data in the boxes and placing a print screen of your trading analysis prior to or at the execution of the trade.

You then list the trade confirmations.

Best Forex Trading Plan Confirmation | Free Forex Trading Course

After you have exited your position, we review it by pasting the post-trade screenshot in our journal.

This is then followed by management and reflection questions to help unlock and deepen your understanding of every trade you have executed.

Best Forex Trading Plan Review | Free Forex Trading Course

Download The Best Forex Trading Plan PDF & Word

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Download Template (Word)

Download Best Forex Trading Plan – Word – Template

Download Example (PDF)

Download Best Forex Trading Plan PDF – Example

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Having a trading plan is significant if you want to progress as a trader/investor. It is important to reflect and deepen your knowledge by being able to elaborate on each trade you do. This will certainly help you transition into the unconsciously competent levels of your understanding.

Remember the key benefits here:

  • Keeps a record of each trade with analysis to reflect on;
  • Spot patterns / trading decisions that lead to losses easily and earlier;
  • The more you keep a record and enter the details, the better it will become at learning the trading strategies.
  • Takes you to the unconsciously competent level – being able to spot trading patterns quickly and able to take on more opportunities.

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