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FOREX Business PLAN

  • #1
  • First Post: Aug 2, 2015 12:33am Aug 2, 2015 12:33am
Hi traders,

Forex in my thought is should treat as a serious business, we must create a plan, select a reliable partner (i.e Broker), have a good strategy,
and it should be specific, measurable, achievable, reliable and as you know..time bound. --> S.M.A.R.T.

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for example,
start balance : US$ 500,
start trading on 3 Aug,
daily profit : 5%
Max. Lot per trade : 0.05
-----------------------------------
Target balance : US$ 100.00
will be achieve on 109 days.


THE BIG OBSTACLE IS :
WHAT IS THE TRADING STRATEGY WE WILL USE TO BE ABLE REACH 5% PROFIT PER DAY , CONSISTENTLY..?

Well, I don't know ..and that is not the reason I post in this forum.
it can may different strategy for each trader to reach 5% profit per day.

but at least keep in mind we have to settle those things first, start balance, target profit per day and target balance..so we can review our strategy...
and its possible to have 5% per day, I did.
Focus only 1 currency, I focus only (mostly) for GBPUSD, cable.

THE OTHER OBSTACLE IS :
RESIST A TEMPTATION TO CUT LOSS OR HOLD PROFIT. ALSO DISCIPLINE TO FOLLOW THE PLAN..
..AND KEEP AWARE ALL THE TIME AND NOT SIMPLIFY THE MARKET.
Attached File(s)
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Revenge of Scalper
  • #2
  • Aug 2, 2015 1:41am Aug 2, 2015 1:41am
ABOUT LOT

You can calculate the daily average pip for ex. GBPUSD is 1.200 pips. ( 5 digit broker )

Balance USD 500, your max. lot per day is : 0.05, or 10.000 pips --> its more than 5 times daily pips (i.e 1200 pips)
so it conclude your account is far far away from margin call...

ABOUT TAKE PROFIT

Your target is 5% from USD 500 --> USD 25.

Small possibility if you plan to have 5% profit from 1 single trade.
it will easier if you plan to reach 5% profit from 5 trade, so USD 5 per trade
it means only 100 pips per trade, compare to daily pip (1.200 pip) it will have big possibility.
..but please notice I suggest to focus only 1 currency. Don't simultaneously open 5 trade in 5 different currency.
Revenge of Scalper
  • #3
  • Aug 2, 2015 4:35am Aug 2, 2015 4:35am
Quoting AcesHigh
THE OTHER OBSTACLE IS : RESIST A TEMPTATION TO CUT LOSS OR HOLD PROFIT.
And this is exactly that you are doing - adding to losing position, increasing order size, high leverage and so on.
And you already blew this account at least once doing exactly the same things.
P.S. no offence, but all time return on this account should be close to -100%
  • #4
  • Aug 2, 2015 6:34am Aug 2, 2015 6:34am
Quoting johnnycash
{quote} And this is exactly that you are doing - adding to losing position, increasing order size, high leverage and so on. And you already blew this account at least once doing exactly the same things. P.S. no offence, but all time return on this account should be close to -100%
=================================================================================
Yes, you're 100% correct, well many times actually a blew my account,
but this is about business, any business have risk of losing.

That's why I share my trading explorer...if look closer, total deposit all the time is around USD 16K and total withdraw is 17K,
so actually my "business" is on profit, but not reliable... 1K for almost one year.

Anyway, I won't give up at the moment. Experience has something to learn.

Good luck ..
Revenge of Scalper
  • #5
  • Aug 2, 2015 5:12pm Aug 2, 2015 5:12pm
Eurusd - daily, 3 aug 2015

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Revenge of Scalper
  • #6
  • Aug 2, 2015 5:14pm Aug 2, 2015 5:14pm
Gbpusd - daily, 3 aug 2015

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Revenge of Scalper
  • #7
  • Aug 2, 2015 7:16pm Aug 2, 2015 7:16pm
ABOUT PARTNER
When you select partner for your business, must be a reliable, trusted one.
Your broker is your partner, yeah.. you put your money on them, and make some withdrawal after sometime.
It's ironic if you don't trust your partner in business, while your money is on them.

When you loss, its not your partner took it, the "market" took your money.
Its a business risk and its normal in any business.

A good partner also give you some good input for the business.
Some broker give daily outlook, trading signal, overview or current status of each currency.

Just follow it, but wisely...
Revenge of Scalper
  • #8
  • Aug 6, 2015 8:13am Aug 6, 2015 8:13am
Follow the "Big Boy"..

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Revenge of Scalper
  • #9
  • Aug 6, 2015 9:03am Aug 6, 2015 9:03am
Quoting AcesHigh
Follow the "Big Boy".. {image}
Why you want to get 5% per day? I think 1% is enough and maybe more than enough for me and I'm looking to get 5%-10% per month.
Quote
Forex in my thought is should treat as a serious business, we must create a plan, select a reliable partner (i.e Broker), have a good strategy,
and it should be specific, measurable, achievable, reliable and as you know..time bound. --> S.M.A.R.T.
Which business gives you 5% per day?
I don't know how you are trading and based on what but your money management is really bad!
Wish u more success brother.
Without an edge MM is useless!
  • #10
  • Aug 6, 2015 6:33pm Aug 6, 2015 6:33pm
Yes bro, i have bad bad money management...
i should have more improvement on that..

and no such a business can give profit 5% per day for BUT Forex..unfortunately not in long term..

still working in it how to make it long term...
...

wish you have more success.
Revenge of Scalper
  • #11
  • Aug 8, 2015 3:17am Aug 8, 2015 3:17am
..yeah im number four..
Revenge of Scalper
  • #12
  • Aug 8, 2015 4:53am Aug 8, 2015 4:53am
Quoting AcesHigh
Hi traders, Forex in my thought is should treat as a serious business, we must create a plan, select a reliable partner (i.e Broker), have a good strategy, and it should be specific, measurable, achievable, reliable and as you know..time bound. --> S.M.A.R.T. {image} for example, start balance : US$ 500, start trading on 3 Aug, daily profit : 5% Max. Lot per trade : 0.05 ----------------------------------- Target balance : US$ 100.00 will be achieve on 109 days. THE BIG OBSTACLE IS : WHAT IS THE TRADING STRATEGY WE WILL USE TO BE ABLE REACH 5% PROFIT...
be careful bro, in my opinion although forex is about currency (money) it can not approach as like other usual business, do that it will trap our mind in a cage. as example 5% target, how we can targeting to ourself to gain such value? in a world that we can do is only waiting the train or some people said as waiting the system setup.

good luck on the journey ahead.
we don't predict, we only ride
  • #13
  • Aug 8, 2015 5:06am Aug 8, 2015 5:06am
i wish you the best, the only thing i will tell you is to stay away from targets, having a target in forex can be dangerous and can confuse your mind on when or when not to trade, good luck
  • #14
  • Edited 7:02pm Aug 12, 2015 5:34pm | Edited 7:02pm
Thanks cakrajaya & poundtrader.. feedback from senior trader mean something to me...


When i was start in forex trading, i read a book about trading. one of the subject is trading psychology.
at that time i was cynically wondering, what on earth the relation between trading and our mind..?

BUT, know I can understood. psychology is one of the important part of success in trading.

greed, fear, hope, self control, confidence, patience, etc..
that was greed that lead me to blew my account in the past..(well maybe in future as well...)

That's why i need such a compass for my trading, and 5% is my clear direction in trading.
for ex. when i saw my profit for today, and its more than my target, i say to my self.. " hey you can stop now..you hit your target already.."
and when my profit is less than 5%, I say to myself.." let's take another one..."

good luck to you too..!
Revenge of Scalper
  • #15
  • Edited 7:41pm Aug 12, 2015 7:30pm | Edited 7:41pm
ABOUT HIT THE TARGET

Trading style for each trader may differ, include the way they want to hit the target.
Some has SNIPER style...long distance, limited ammo, shoot rarely
Some has RANGER style ... relatively close distance, lots of ammo, shoot like Rambo...

I choose ranger style, my target must be in close distance, I must have lots of ammo, and must often to shoot...
It will look not so fancy, not look sophisticated, BUT as long I hit the target..why not?

BUT ..in the other hand.. the thing maybe forgotten, I have a greater risk than SNIPER.
because I shoot in close range, I can hit easily by my enemy.


ex.
Balance $ 500, target 5% is $ 25, max. lot : $500 / 10.000 = 0.05.
split the target into five, so it will be $ 25/5 = $ 5.

to hit the $5, I can open 5 position with lot 0.05.
0.05 --> $5 need 100 point.
0.05 --> $5/5 = 1$ --> 20 point.

This is only example and come from my thought,
Please don't follow me and DON'T do blindly if you're not sure.

Revenge of Scalper
  • #16
  • Aug 12, 2015 7:39pm Aug 12, 2015 7:39pm
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Revenge of Scalper
  • #17
  • Last Post: Oct 19, 2017 3:13am Oct 19, 2017 3:13am
As I would like to think in spite of the fact that forex is about currency (cash) it can not approach as like other normal business, do that it will trap our psyche in an enclosure. When I was begin in forex trading, I read a book about trading. one of the subject is trading brain research. Ravenous, fear, trust, poise, certainty, persistence, and so forth. The main thing I will let you know is to avoid targets, having an objective in forex can be risky and can befuddle your psyche on when or when not to exchange.
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