The quest for the "Holy Grail" perfect trading system among forex traders around the world has turned forex trading into a money drainer rather money maker for a great people. Many still run from seminar to seminar today in search of the "Holy Grail System" that could pull in over 100pips daily consistently. Unknown to this category of traders, such quest has remained an illusion since the history of mankind. A young man worked up tome sometimes ago, requesting if I had a trading system that could guarantee 100 pips daily but confessed he already had up to 14 auto trading systems. Though shocked at the discovery, I did not let him know how surprised I was to learn that he had up to 14 trading systems and was still looking for more. Truth is he was sincere in his quest and was willing to pay any amount of money I asked him to pay to pay to create a template for him that could guarantee him getting 100 pips a day with my trading system.
I told him I did not have such a system but if he needed a guide that I could offer him.
Truth is, no matter your profession, no matter your calling or the kind of strategy you want to apply; you will make no headway without this powerful weapon. You may be surprised but you know it already but failed to recognize the potency of its power. But I assure you that if you make up your mind today to start using this powerful tool, you will, sooner or later, be converting all losing trades to unimaginable profits.
What is this that I am talking about?
You must have heard it said several times over: "Plan your trades and trade your plan". This, unfortunate, is all most traders have know and nothing more. It is simply about using a good trading plan and not many know how to even on the component of a trading plan and subsequently when on the details.
What is a trading plan?
A trading plan is a traders guide or road map to the successful accomplishment to his trading dreams. Without it you are lost in the market.
Why you need a trading plan?
Just two reasons for having a good trading plan will do here: first, it keeps you in the right direction and second, trading is business and all successful businesses always have plans.
Components of a good trading plan?
There are basically six components of a decent trading plan. I will give you the checklist now and the cover the details later. But note also that planning is a plan. The components of a trading plan are as follows,
1. Your trading goal
2. Your mindset
3. Your weaknesses
4. Your trading routine
5. Your trading system
6. Your trading journal
Each of the above components is very vital to your trading success. Develop them and half the job is done, develop the discipline to follow your plan and your success in trading is guaranteed.