Creating A Killer Forex Trading Plan in 2018

How long will it take for you to get consumed if you entered the Amazon jungle without any preparation? Not too long. The same concept reflects in Forex trading! If you enter the field without a good Forex trading strategy, the market will chew you up. The foreign exchange market is known across the globe for its immense liquidity (roughly over $5 trillion). This sets the trap for traders who run blindly towards the money with no plan whatsoever. 

A trading strategy is the backbone of your trade. Profits, losses, breakevens, these are governed by how strong, weak or dormant your plan is. Here are 4 tips to create an amazing Forex trading strategy:

Forex Trading Strategies 2018

1) Establish Your Goals Clearly: Without knowing the destination, you can't commence your journey. The first step in your trading plan should be your goal - "How much money do I want to make? The loss amount I want to avoid. What are the possible risks I will be taking?" Ask yourself questions like these which will define the objective of your strategy and establish defined boundaries. Know where you are going, how you are going and why you want to go.

2) Keep an Eye Out for Risks: Forex trading and risks are two sides of the same coin. The obvious rule of Forex is, to make profits you have to take risks. However, defining how much risk to take is what will draw the line between profit and loss. Establish a risk threshold you want to obey, and risk no more than 1-2% of your trading capital.

3) Research Intensely: A good trading plan will only help you start the car; research is what will drive it to the destination.  Prior to entering your trade, research about every aspect affecting the trade - from stock charts to external factors that affect the market, keep everything on your mind. This information will help you maneuver your trades!

4) Analyze and Inspect: The perfect dessert for a trading meal is analyzing your trades and inspecting each outcome. You will grow in trading only when you learn the variety of decisions that can be made, and what each one results in. With every trade done, write down the various elements you came across, whether you faltered or succeeded at it, and how you can better your trades!

Steady analysis and consistent planning will shape your trading career from wet clay into a stellar sculpture. From avoiding losses to gaining consistent profits, the benefits of a good Forex trading strategy are endless. WesternFX specializes in devising impeccable trading strategies; clients from over 18 countries have recognized us for it! With our timely tips and consistent guidance, your Forex trading career will flourish!