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Putting It All Together

Topics for this lesson:

a) Making Sense of it All
b) Demo your Face Off
c) Conclusion

Making Sense of it All

Now it’s time to put everything together. It’s time to develop a trading plan. A trading plan should consist of a set of rules that you’ll abide to when preparing to enter the battlefields. By sticking to your rules, you’ll assist yourself in by making more mechanical decisions, then emotional decisions.

For example your trading plan might go a little something like this.

1. Look for a evening star pattern on a 50.0% or 61.8% Fibonacci level on a 1HR GBPUSD chart.
2. Enter at the open of the next candle after the formation.
3. Use only a 30 pip take profit and a 15 pip stop loss
4. Calculate pip size by risking only 2% of account balance.
5. Place trade, and walk away from computer.

Whatever rules you decide for yourself, commit to them. Only change them if you find that your existing rules are not working for you. However, if it is working, then leave it alone. By creating your own profitable strategy you will become successful in the battlefields.

Besides battling the Bears and the Bulls, you’ll have to battle yourself. It is said that this arena is 80% mental. A trader will truly become self aware of their psychology when they enter the trade and pit themselves against the best of the world with their own money and knowledge. It is these psychological battles that make your trading plan so important.

Demo Your Face Off

Demo. And I’m not talking about demolition. I’m talking about practice. Every respectable broker out there allows their prospective clients the opportunity to trade risk free by allowing them practice accounts.

In a demo account you can simulate trades with actual live price movement. This also allows you significant opportunities to test your strategies without having to put a single dime at risk.

Do not… I repeat do not open a live account until you have proven yourself to be successfully profitable for two solid months. A lot of new traders will catch an initial winning streak, feel confident, open a live account, and lose it quickly.

If you feel the need to trade with live money, then open up a micro account. That way if you’re going to bust your account, you’ll only do so with a nominal amount of money at risk.

DEMO. DEMO. DEMO.

Even when you have a live trading strategy that’s profitable, continue to demo. You might find ideas to fine-tune your existing strategy. Make good use of your practice account to see how successful your ideas might become.

Conclusion

And as this basic training comes to a conclusion, know one thing: Education never ends. Continue to further your education in Forex. The FX Trading Network has compiled enough information to keep you full of knowledge for years to come. Make use of our resources and education. This site was designed with you in mind. You can and you will be profitable in this arena.

Stand up tall soldier. Hold that weapon solid in your hand. You have plenty to be proud of. This is an arena that governments, multibillion-dollar hedge funds, and the world’s largest banks compete in. And then there is you. Amazing isn’t it? You are going to enter a trillion dollar a day industry and you will come out a shining success.

More Lessons

1. Recruit - What is Forex?
2. Private - How does Forex Work?
3. Private First Class - Selecting a Broker
4. Corporal - Pick a Chart, Any Chart
5. Sergeant - The Fundie vs The Techie
6. Lieutenant - Strategize
7. Captain - Indicators
8. Major - Playing with Price Action
9. Colonel - Developing your Plan
10. General - Putting it all Together