Winning Trading Plan in 2022
Winning Trading Plan in 2022 talks more about building a winning plan and not just a plan. The forex market is crazy oftentimes, and only the smart traders take advantage of market liquidity and craziness.
To learn how to day trade in 2022, you have to learn a winning trading plan. Preparation begets success, having a winning trading plan guarantee success in forex trading.
You’ve got to follow your winning plans squarely. Do not be a fool thinking otherwise.
A winning trading plan has been put to tests; forward tests and backtests severally before it can be relied upon for day trading. A day trader has many daily experiences that can be enhanced and used to make a turning point in trading the global market.
A day trader has to be strict, firm, and disciplined to build a winning plan that works always. Fear and greed should be avoided and never discard your winning trading plan for anything.
This brings us to the question, what is a trading plan?
What is a Trading Plan?
A trading plan is a written procedure, guideline, or a set of rules aimed at achieving success by maximizing profit and minimizing loss in trading with the idea of your position size, investments, capital risk, risk-reward ratio, and every detailed trading activity should be.
A trading plan should be simple to work with without having to pull oneself beyond limits.
A trading plan is built on accuracy, in-depth knowledge, research, and proper planning of individual traders to avoid losing money while taking reasonable risks.
Your trading plan should also involve the pairs you trade, the hour of the day you trade, and how many hours you need to trade daily. These and all aspects of trading strategies with candlestick patterns to be traded and what news events you wouldn’t like trading because of market volatility.
Do you have a template you can share of a trading plan? No individual trader’s template is best used as a recommendation. You have to practice and create your trading plan.
Your ‘’Winning Trading Plan in 2022’’, should not be a complicated plan but rather a simple, easy-to-understand plan with self-discipline.
Let us discuss our winning trading plan…
Need For a Trading Plan
Why is a trading plan important? Emotional decision-making makes day traders lose money and having a winning trading plan will guide the day trader not allowing emotions to play out in his day trading but rather the winning trading plan takes its course.
Your winning trading plan involves all aspects of your trading and sticking to these basic plans will make your trade differently. For an example of the trading plan, I have a winning trading plan that says I should not trade some certain currency pairs and at some hours of the day, I don’t trade.
Oftentimes, I take a glance at a few currency pairs I ought not to trade and I would want to think otherwise but because I adhere strictly to my winning trading plans, I don’t do such.
A trading plan will make a day trader maintain discipline. With a winning trading plan, your equity multiplies and never diminishes. Do not lose money sheepishly.
For me, I have my favorite currency pairs I trade and hours of the day available for trading. I trade AUD/USD, USDCAD, GOLD, EURUSD, GBPUSD, EURAUD, GBPAUD and GBPNZD. While I trade between 7:00 am to 3:00 am daily.
I also don’t look to double my trading account in a day, I have a percentage I look to on daily trades like 7% to 10% and I will be out of trades for the day. I can have time to play with my wife and adorable kid.
Listen, limit your daily trading activities and reduce your position size.
I don’t even look to trade correlated pairs at the same time, say I see GOLD in my right set up and I hop in, I don’t have to trade AUDUSD also just because they are correlated pairs.
What do I include in my Trading Plan?
How do You Build a Winning Trading Plan in 2022 tells the everyday traders to include all trading activities in their trading plan. First of all, a day trader should include, currency pairs or pairs they would want to trade in their plan. The currency pair with low spreads advisable for every beginner is EURUSD, this pair has high volatility and the lowest trade as observed from many brokers.
What is your stop loss size? Do you have crazy stop loss just because you intend to take as little as 5 pips in the market?
Do you have realistic take profit points as a day trader? Would you like to trade the financial market 24 hours a day and never lose sight of the market?
What are the candlestick patterns you’ve learned and mastered so well that you can easily find and trade efficiently?
Choose one or two trading strategies, master them very well and trade only those strategies all week long, all month, and yearly. Until you have mastered other strategies so well and you’ve become satisfied before you trade them.
Would you like to master the benefits of both fundamental and technical analyses to help you trade differently? Read my post on ‘’Fundamental analysis vs. technical analysis: 2 major myths & solution.
Help me Make a Trading Plan
How do you follow your trading plan? It takes discipline and being focused to create a trading plan and follow it squarely.
A day trader should also have a winning mentality to follow a winning trading plan.
Winning Trading Plan in 2022: Have a Goal
Without creating a goal, success can be hampered. You need to create a daily goal, knowing how many percentage profits you must make daily and a weekly goal to know the losses incurred weekly, so you can know your progress all the way.
Stay away from trading after losing a certain percentage of your equity.
Learn and master your mistakes before resuming trading.
Have a Risk-Reward Ratio
Money management will make you succeed all the way. Win big, lose small should be the goal. Let one win trade cover at least two loss trades.
This article will help teach you risk management. I have a 1:2 and 1:3 risk-reward ratio. For GOLD, I use 1:3 as my minimum risk-reward ratio because of its volatility. For other currency pairs, a risk of 1:2 is used and a 1:1 risk-reward ratio is only used when I know taking maximum risk is allowed because I can trust my setup two-thirds.
Know Your Currency Pairs
Carefully select those currencies you would be trading and add only those currency pairs on your trading platform. I would advise starting with EURUSD and GBPUSD pairs. I don’t trade USDJPY and EURGPG, no! and I wouldn’t be trading them whatsoever. I have a friend who will never trade GOLD. Smiles..
Document Your Trades
What is your trading strategy for equity? Your equity should determine what you should risk and your position size.
Always write your daily trades using a trading journal. Your trading journal should consist of screenshots of before and after taking each trade. A trading journal will make every day trader learn at a fast pace.
Your trading journal should include the date, time, and most important news releases with their impacts on currency pairs.
Do a Trading Challenge
A day trader should be open to learning. Challenge yourself to get uncomfortable with losing money. Take trading as a business, do not gamble but rather take well-calculated risks. People are making so much money from the forex market, you’ve got to believe in yourself.
Have a team of aspiring traders you can teach your trading plan and you can review them while taking a forex trading challenge with them.
Do not be a lazy and selfish day trader.
Trading is a marathon and definitely not a sprint, it is a get rich slowly and never a get rich quick strategy and this means you’ve got to learn and learn well.
Do not turn your trading strategy into gambling.
Winning Trading Plan in 2022 is one of the articles that guide towards proper risk management, advance trading for profiting, and enabling a beginner to draw up a trading plan with ease and purpose while achieving success.