Sample Trading Plan

Goal

My goal is to make 200 pips per week.

Market

My target market is the JPY pairs:  AUD/JPY, CAD/JPY, CHF/JPY, EUR/JPY, GBP/JPY, USD/JPY forex spot market.

 My trading style is day trading with all trades taking place between 12:00 am GMT and 1:00 am GMT.

 Preparation    Before starting my trading day I will check out the economic calendar of the forex market for the day and see the fundamental data that could affect the JPY Family. I will also look at the charts and trace trendlines and Fibonacci support and resistance lines calcuating Headroom and required Stop Loss for each trade.

 Timeframes    I will focus on two charts: 1 hour and daily. I use the daily charts to identify the entry points and the 1 hour chart to get good entry points for my trades.

 Strategy         If the forex market is showing signs of lack of direction, I will stay out of the market.  I will not trade until I see a trend forming. I will use resistance/support, trendlines and moving averages (MAs) to get a my signals for going long or short.  Even though technical analysis is the basis for my trading, I will pay attention to any fundamental data coming out.

 Major events    I will not trade during speeches of governors of Central Banks, e.g. the Bank of England or the Federal Reserve, as the market becomes too volatile, and jeopardizes my trades.   I will also get out of the market before major economic data releases, like the Non-Farm Unemployment numbers.


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