Creating A Plan For Price Action Forex Traders

Author: Edward Lomax

Price action Forex strategies are only powerful if you have a detailed trading plan to follow. Since the strategies are often very simple, a lot of traders thing they can remember everything and don\'t need a plan. But in the heat of battle, when you have real money at risk in the live markets, you are going to be thankful for having a trading plan for your price action strategies.

The first thing you need to understand is 'why' you need to write down a plan. The trading plan is the glue that holds all your trading decision together. When you don\'t have a plan, it is easy to get distracted and let your emotions rule your trading. Throwing the rules away and trading on what you 'think' is going to happen is the fastest way to lose money. So, even though price action trading strategies produce fantastic results, you need to have a plan you can follow before and after the trade is placed.

You see, Forex trading is very different from jobs you might have had in the past. If you are an at home Forex trader, which most of you are, you don\'t have a boss. Better said, you are your won boss. Since there is not a higher power you need to be accountable for, it is easy to throw the rules away and base your decisions on whims or emotions. So, think of a trading plan as a way to hold yourself accountable every time you engage in trading in the live markets.

Your price action trade plan is more than just the rules to follow. The trade plan is much more in-depth than that. Think of your trading plan as a the way YOU are going to trade the individual trade setups as a whole. The way you trade should fit your personality, lifestyle and goals, and must be reflected in your plan. The basic trade rules you can get from a pro trader, but your personal trade plan must be personal and come from you.

Article Source: http://www.articlesbase.com/currency-trading-articles/creating-a-plan-for-price-action-forex-traders-4032688.html

About the Author

Next, check out Learn Forex Live to see how a professional trader trades price action. Find out the truth about Forex trading and what you can do to start profiting as soon as possible on http://www.tradetheforexmarket.com