Why you need a solid Forex trading plan
At first, this name of the article might seem to you odd. Why the heck will I need a plan when I am clearly winning trades with my guts? I am not a master, but also, I have not got the time to plan my trade. It is only the foolish and scared people who carry a notebook and plan their trade. Forex trade is about taking the risk to make the profit. Isn’t it?
We do not know whether to feel pity for you or laugh at your word. Forex trading is all about planning. The more advanced your planning are, the more cutting edge benefit you got there in your plan, the more money can make from Forex. From the beginning, we have been telling you only a little number of people make money in Forex. In percentage, the number is only 5%. Do you think these 5% people trusts their guts and make random decisions to come home with their money? You are wrong. They only make money because they have a master plan.
Importance of planning in Forex
To make money: It is the nature of Forex that you need to have a plan in order to make money. Without making a winning strategy, you cannot win money. It is as simple as that. You like the smell of dollar bill, you got to have a plan. Even pickpockets also have a plan who to pickpocket, why won’t you have a plan then?
To separate yourself from the other traders: As the forex traders make a lot of trades each day, there is a high possibly of winning always. It is like that simple math of possibility if you are going to hit a door with the ball in your hand, in 20 times the probability of hitting the door is 7 times. If you don’t have a plan, you can still win, but at the end, you will have lost money, like all the other traders in the online forex live trading.
Modify your existing strategy: Don’t stop planning if you have made a strategy out of your trading experience. There is always a chance of improving. Modify your strategy, improve it, build a better version. 10 dollar is more worth than 5 dollars. If you look at the professional trader then you will see that all of them use a single trading strategy in the market and modify it be assessing the trading performance in order to do better in future. Unlike the novice traders they have strong confident in their system and they trade the market with solid risk management factors and trading plan.
Summary: Master plan is the brainchild of success. The more you have a successful and practical plan the better chance you have to become a professional trader in the forex market. If you are relatively new in forex trading then make sure that you are educating yourself first before starting to trade with real money since it needs a clear understanding about the financial sector to make money in trading.