Forex Trading Plan
About Me
I have been trading on and off for the past two years. I want to get back into again, but this time I want to be more disciplined than what I was before. I have been successful, but I also have been unsuccessful when it comes to trading. I got out the last time because my account balance was turning in to an emotional roller-coaster, up big one day, down big the next.
Why do I want to be a Trader?
I want to become a successful trader because I want to achieve financial freedom. My primary objective is to make enough from trading on Forex to supplement my current income at my career. My secondary objective is to continue to learn more and educate others about Forex on ForexFactory.com. Achieving these objectives will help me become more independent and confident in myself, and be able to do what I want in life. I will achieve my objectives because I am a constantly driven learner that will take the time needed to learn as much as possible about Forex.
Trading Style
I am an aggressive intraday trader. I am tolerable of long-screen time to watch for developing trades. However, due to my career, my screen time will be limited. Due to the aggressive nature, I will need to adhere strictly to my trading plan to ensure that I maximize profits and minimize losses.
Strengths & Weaknesses
I have the tendency to force trades mainly due to hope and greed. I want to be able to prove a lot, quickly, and this leads to over-trading. I also have the tendency to try new strategies without proper testing or research. I am very strategic and believe that with a good trading plan and discipline will help me overcome these psychological weaknesses. I get excited by the thought of trading. This can lead me to force trades to be “in the excitement”. I do not have any personal conflicts other than it is difficult to trade while I am at work. I do not have any emotional issues other than sometimes becoming upset after a loss. I do get tense from time to time but nothing that I lose sleep over.
What do I trade
I am going to be trading Bobokus' Fibonacci System. This requires using four different Fibonacci lines. The daily, the daily retracement, the intraday (4HR), and the swing (1HR). I will then trade based of the 1HR charts.
Currencies
I will follow the GBP/USD, EUR/USD, and USD/JPY. I will have a limit of one open order.
When do I trade
Using the Fibonacci lines, I will wait for price to move within the Long/Short Zone, which lies between the 61.8 and the 38.2 retracement levels. If price moves into this level I will wait for the next hourly bar close outside beyond the long/short levels to enter a trade in the appropriate direction. My Stop Loss will be 10% of the range between the Short and the Long, and subtracting this amount of pips from the Short for Long Positions, and vise versa for Short Positions.
Example:
Swing Long = 1.500
Swing Short = 1.450
10% of Range = 5 Pips.
If going Long, the Stop Loss will be set to 1.445
If going Short, the Stop Loss will be set to 1.505
The take profit will be the 1.382 level - 10% of range for Long positions and -0.382 level + 10% of range for Short positions.
What time of Day will I trade
Due to my career, most of my trading time will happen in-between 4PM-1AM EST. I will try to see if I can work looking in to charts when I am at work
Broker
I will be using Interbank FX as my broker and using a $10,000 paper account.
Risk Management
Most of the risk management is dealt by using the Fibonacci levels.
Money Management
I will risk no more than 3% of my account in one trade.
Goals
Learn from my mistakes
Learn from the ForexFactory.com Community
Teach the ForexFactory.com Community
10% Profit every month
What to expect from this Journal
I will be posting on a regular basis what I am seeing on my charts and will give you a forecast for what the day will look like and when I will likely enter my trades. I will also post when I place a trade with a summary when the trade closes. I look forward to all of your feedback and thoughts on this system.
