Developing your first trading plan

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I once heard that even a bad plan is better than no plan, and this is absolutely true. It is crucial to develop that first trading plan, thanks!

 

Probability trading strategy

Just like to say hi and good luck to all newcomers from a newbie .

I am looking to develop a trading plan which incorporates mean reversion probability in spot forex .

Basically ,my understanding of mean reversion is what goes up must come down ,(vice versa) eventually returning to the mean but never zero .

Unlike a casino game like roulette , where every result is independent and random .

I kind of figured a long-term martingale strategy with 100 pip blocks could work .

eg: buy 0.01 lot EUR/USD with a take profit @ 100 pips and a pending order to buy 0.02 lots instead of a using a stop 100 pips away .

For this trading style to be successful ,a 100 pip retracement in 3 months would be required .

 

I would look closely into support and resistance points

 
Chess4Life:
I would look closely into support and resistance points

Support and resistance points continue to fail .

 

nice article

 

This is an excellent post and a very good explanation about the difference between a trading plan and a trading strategy/system.

A trading strategy or as some people prefer to call it a trading system, is a set of rules by which your trading is governed e.g. a specific entry and exit strategy which you follow diligently time and time again.

A trading plan on the other hand is where you define your goals e.g.

Short term goal

Medium term goal

Long term goal

Short term goal – set out where you want to be a year from now.

Your medium term goal may be two years from now and your long term goal may be 5 years from now.

Plan your Medium term goal and Long term goal.

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