Documents forex trader

  • Apr 01 2021
Documents forex trader

4 required documents forex trader

Each self-respecting stock trader should have four key documents, detailed and thoroughly written out (both in electronic and in written/printed) format.

These are the following components of success:

-Rules and key methods of trading strategy;

- checklist (mini-plan) for entering the position;

- Mani management rules;

- The plan of trade.

Let's consider in detail all documents:

1) the rules of trade tactics include clear rules for entering and exiting trades, as well as such characteristics as describing the trading time, time interval, currency pairs and analysis components, and other nuances that are relevant to the opening and closing of the transactions themselves.

2) checklist for entering the exchange:

this is nothing more than a list consisting of the conditions for opening a transaction.

If at least one of the requirements is not met, it is better not to enter the market.

3) the rules of the applied money management:

instructions for calculating the position size

This can be as a percentage of the deposit, as well as the number of lots per unit of balance, or other possible options for calculating the size of the order.

4) trade plan

The trading plan is a kind of card: it is equipped with all pointers and tips, can give answers to questions.

Typically, in such a document, experts recommend incorporating the methods of the strategy, its rules, the methods of managing capital, but the excessive workload of the document is also not good.

But how to make the plan working, and most importantly effective?

So, the trading plan must include:

1) force majeure or emergency circumstances.

The trader should be spelled out, and accordingly, measures are taken, how exactly he should act.

If: electric power is disconnected, software crashes, the Internet goes down, and other such moments.

The security measures are taken by the player from these emergencies most often include a laptop with a charge, a PC, a tablet, or a phone with a mobile terminal application.

2) Methodology for limiting profits and losses

Yes, in the case of too huge profits, a moderate-income, or some losing operations.

This component is very individual and largely depends on the trader, his trading style, the level of risks used in trade, and so on.

Set yourself a bar for profits, and when it is reached, you can no longer trade on that day.

It's about restrictions (about profits), not goals.

The same goes for losses: for example, it's better to take a break after five unsuccessful deals or too much drawdown should tell the player that it's time to take a break and rest.

3) the emotional aspect: when trading is strictly forbidden.

So, you can not trade with:

- diseases, colds, temperatures, etc .;

- in a state of depression, depression, and depression;

- in a state of anger, anger, excitement, fright, and similar emotional feelings.

4) in case you use several trading tactics or multi-level strategies, then describe specific conditions and parameters when which one should be applied.

5) record the information sources used.

It's about the economic calendar or the Newsline, or the marks on the charts.

6) set yourself trading goals - short-term and long-term.

7) Be sure to create your trading plan, up to the point that you need to print it and attach it to the wall, following it.

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The trading plan is a kind of card: it is equipped with all pointers and tips, can give answers to questions.

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