How to create your Forex trading plan. 2019 Forex plan

Forex Planning

Planning is the main key for every business's success. All traders, business stakeholders and every company in any field must plan their works well in order to avoid losses and to optimize revenue.

Forex is a financial risky field which you must plan well and be updated to market changes. Forex is a business where you need to try and evaluate and re-plan your work using different strategies to reach the max-profit.

A Forex trading plan is an organized way to executing a trading system that is based on your market analysis and your forecast while evaluating risk management and opportunities.

Forex traders who follow a systematic approach and plan well, are those who survive year after year after year in that risky business.

What you must know before entering Forex trading!

1- Decide how much you want to deposit

2- Decide on your currency pairs

3- Choose an appropriate broker

4- Creating the right Forex account for you

5- Know how the China-US Trade War affects the currency rates

6- Follow analysis about important trade concerns such as UK Brexit

7- Read about Forex signals and trading indicators

8- Watch Forex videos to learn from competent traders

Forex is a try&error trade

After you get the required information, you need to get in business. You must know that Forex is a try&error trade, and you may experience possible losses. Only your plan will enable you avoiding great money losses. Traders must focus on the trading plan.

Forex trading is a business and every trader should approach his or her business professionally. Forex trading isn't a video game in which you aim and shoot at a target on the screen for fun and hope to see a gold coin appear. Instead, we're effectively taking part in a highly competitive domain populated by large, powerful players like banks and hedge funds. Therefore,  a planned trading system that is detailed, realistic, and well structured will be needed if you really want to be successful in this business.

The key of a planned trading system is to have a set of well defined trading objectives in terms of your personal trading situation and target profit, the opportunity profile for currency pairing, risk management, and account equity. If you don't take the time to learn and understand how these variables can affect your results, then you don't have any chances for success in Forex business.

- Personal Trading Situation and target profit

First, you need to set a useful target for trading according to your personal trading situation, including the number of currency pairs traded and the volatility of each pair (measured by Average Daily Range (ADR)), personal trading style, times of day available to trade, and the total time available each week for trading.

As an example, a target of 500 pips per month might be an unrealistic target for someone who has only 2-4 trading hours per day, twice per week, focusing on scalping on a pair such as EUR/CHF, which has a lower ADR. Therefore, it is necessary for each trader to realistically consider his or her own personal trading situation in order to derive a challenging but achievable target for monthly trading profit.

- Opportunity Assessment

An effective method of conducting an opportunity assessment is to look back over a chart for the past 1-6 months. On this chart, highlight the times of day and days of the month when you are generally available to trade. In relation to your trading style, how many setups were apparent on that chart, and how many pips potential did they offer relative to the realistic take-profit levels where you would have exited the trade!

- Risk Management

Managing risk is the most important part of any trading plan.

Winning trades are only one part of the profit equation. The other part is unprofitable trades, which have to be accounted for in deriving a realistic bottom-line objective. It is critical that your trading plan specifically allow for losses.

Trading loss can be divided into two categories: the average size of stop loss employed, and the frequency of trades being stopped out. If you maintain a record of your trading activity, whether in a demo or live account, it can be useful to simply plug in your actual figures for average stop loss and Win/Loss and assume those performance metrics can be projected into the future.

If your trading situation does not allow for this, you may need to consider wider stop losses, which will in turn have some effect on Reward/Risk and position sizing.

- Account Equity

Depending on account equity,  a lot of dollar profit can be generated from 500 pips per month. For example: 500 pips per month operating profit into a financial profit in USD (assuming a US dollar trading account and 500 pips realized on a USD quote pair).

As indicated above, with a 30-pip stop and risking 1.5% of account equity on any single trade, 500 pips equates to $2,500 profit for every 10K increment in Equity. This results in an actual leverage utilization of 5: 1, which is apparently much lower than the maximum leverage traditionally offered by many brokers.

Note that the money management benchmarks are very general that they do not reflect partial lot sizing for levels of account equity between the categories quoted above. In other words, profit-per-trade potential can be further optimized by calculating position size (number of mini lots per order) each and every time a trade is about to be entered, relative to the current actual account size using the 30-pip stop and 1.5% account risk formula illustrated above.

Based on the above, we can see how Account Equity can affect our financial profit, increasing our operating profit (in pips) through leverage. Thus, the question every trader inevitably faces when opening a new account - "how much money should I put in?" - needs to reflect consideration for the maximum amount that could be lost entirely without disrupting household finances, while at the same time addressing the question "how much do I want to make?"

If you want to earn $10,000 per month on 500 pips, for example, then your trading account needs to be funded to the tune of $40,000. If that is not possible, then the target for financial profit (in dollars) will need to be reduced, or the target for operating profit (in pips) will need to be increased.

It will be much better to start building up your trading confidence by building up your account slowly and consistently over time than to have to repeatedly answering call after call from your broker.

Focus on your Forex plan as it's the optimal protection in such business.

How Much is Forex Brokers Fees and Costs

Every Forex trader seeks a transparent and trustworthy broker to reduce costs. Some brokers don't clarify their fees and costs. Traders must avoid those brokers.

How to know about brokers fees and costs!

You need to know types of costs and fees to compare brokers and choose the best transparent and trustworthy broker.

Forex brokers charge fees in one form or another and there are trading costs associated with each trade placed. Many traders often ignore the total cost per trade which can make a big difference to the overall outcome. While the most obvious cost is through spreads, there are other fees and costs which are applicable and should not be ignored. Transparent brokers will always be upfront about their fees and list them either on their website, or in their trading platform.

Overview of Direct Trading Costs:

Direct trading costs consist of spreads, commissions, swap rates, overnight financing costs, storage fees and custodial fees. Not all costs apply to every trade and it all depends on which asset is traded, in case it is traded on margin and the duration of each trade. 

All costs involved with each trade should be mentioned by the broker. This is especially true if the broker offers a proprietary trading platform. Calculators are also provided which allow traders to calculate the cost of each trader before placing it.

-Spreads costs

Spreads are the most obvious cost associated with a trade and refers to the difference between bid and ask price. Spreads are the primary income source for brokers who live from the mark-up on raw spreads. Raw spreads can be as low as 0.0 pips in the EUR/USD, the most liquid currency pair which carries the lowest spread. Everything above this level is the mark-up the broker charges.

While spreads are listed on each broker’s website, traders can easily view them in their trading terminal.

-Commissions costs

Some accounts may come with spreads as low as 0.0 pips on the EUR/USD, but the broker charges a commission per lot. Accounts which charge commissions are usually ECN accounts which operate a no-dealing desk execution. Traders get the raw spreads, or very close to it, and in exchange the broker charges a commission.

Commissions are also charged on equity trades and various other assets (ETFs, ETC’s, bonds, etc.) will carry a commission charge. In order to get the full details on which assets carry a commission, traders should either consult the asset directory provided by their broker or get the information directly from the trading platform. Transparent brokers will list the full contract specifications on their website while proprietary trading platforms list all the information in each deal ticket. Volume discounts are often given to account which carry commissions.

-Swap Rates

Swap rates, sometime referred to rollover rates, apply to each position which is held overnight. Swap rates occur due to the interest rate differences in the base currency and the quote currency. Brokers will list how this rate is calculated and there is a Swap Long and a Swap Short rate. Depending if the traders take a long or short positions, swap rates will either be credited from or debited to the account balance. A lot of brokers fail to forward positive swap rates to traders.

Forex traders can check the precise swap in their MT4 Trading Platform by following these steps:

1-Right-click on the desired symbol in the “Market Watch” window and select “Symbols”.

2-Select the desired currency and then click on “Properties” located on the right side.

3-Scroll down until you see “Swap Long” and “Swap Short”

-Overnight Financing Costs

This is a cost related to margin trades. Brokers will explain how the effective overnight financing rate is calculated. It depends on the amount of leverage used per trade and which asset is traded. This is an important cost to monitor as it increases the longer an asset remains open in the account.

-Storage Fees

Some brokers will charge traders a storage fee for holding certain assets. This is an unnecessary fee, but will be charged for holding positions in the account which comes on top of swap and/or financing fees. In essence it is a fee charged for maintaining positions in your portfolio. Brokers who charge storage fees should be avoided.

-Custodial Fees

Equity, ETF and bonds come with custodial fees which are usually a small percentage charged annualized, but may be deducted monthly with a minimum. Not all brokers offer equity or bond trading and use CFDs which are great to get in on the price action without the need to incur custodial fees.

Overview of Indirect Trading Costs:

Indirect trading costs are costs which are not charged per trade, but include costs such as withdrawal charges and account inactivity fees. Deposit charges are waived by all brokers, which is standard industry practice. Some brokers even reimburse their traders for deposits made via bank wire which is usually charged by the trader’s bank. Withdrawal fees are usually not charged by brokers, but third-party fees may apply such as bank wire charges. All charges relating to deposits and withdrawals should be listed on the brokers website.

Another unnecessary fee which some brokers charge is an account inactivity fee. This is usually applied after three months of no trading activity. The broker will then charge a quarterly cost, which will be listed in the trading conditions of the broker’s website, until the account balance is either depleted or trading resumed.

In general, all fees which a broker can charge will be listed in their website under trading conditions. Traders should carefully review this section as the lesser known costs are only mentioned there. In case this information is not provided, the broker is better to be avoided. Customer service can be contacted, but again, a transparent and trustworthy broker will not hide their costs. Costs like spreads and swaps are best accessed directly from the trading platform as they can change quickly due to market conditions. Using cost calculators provide by brokers can also be used in order to determine precise costs per asset and volume traded.

Related Articles:

➽ How to earn money with Forex!

Can You Really Become A millionaire With Forex Trading ?

There are some questions that everyone wants to trade with Forex are asking like 

• How much money can i earn ??
• How many pips can i make per month??
• Can i start with a 10$ account and can i reach 100,000 or even a million??

But the most important questions that concerns all traders is can i become a millionaire with Forex trading??

The answer could be yes or no as it's dependent on some conditions.it's not a stable process and it varies always.

So, if someone have the right conditions he will make it and if he doesn't have good conditions he won't make it.

What's these conditions??

Let's say that if you wanna turn 100$ or 500$ or even 2000$ to a million it won't be easy at all, you will have hard times,difficult situation.

I'm not saying it's impossible to do that but it's very hard"every thing is possible,nothing is impossible".

You have to be patient and overcome the challenges you will face and one of them is choosing a good broker and it could be the most important challenge as Forex brokers don’t let you grow your account consistently, because in most cases, your profit is their loss.

There are two important things u have to do 

• You have to learn and master your trading techniques.
• You have to own some money "capital" to start with.

To learn how to trade Forex, become a profitable trader and hopefully a millionaire, first you should have a source of income that supports your currency investment.

I mean this source of income should cover your expenses while trading because you could lose.it's not about profit only as it's profit and loss.

How to Make Money with Forex?

Most people think that they can learn to make money through Forex trading in a short time, and become a full-time Forex trader making thousands or even millions of dollars >> not true.

None of the real millionaires or billionaires, like George Soros, have made their wealth through full-time Forex or stock trading as They are experienced business persons who make a lot of money through several sources of income they have.

The Best Forex Signal Providers (Paid - Free)

If you are new to Forex trading then you should:

• Choose you Forex broker first.
• Create an account
• Make a deposit

Then you have to use a Forex trading signals as it tells you when to trade and what to trade at this time.

You can consider it a tool to help you place trades at the best way.

It's hard to find a Forex trading signal provider as there are lots of them so who will you choose so in this topic we will produce the best Forex trading signals providers.

-JKonFX Market Analysis: Most Trusted Signals

• Verified Statistics: Not independently verified.
• Price: plans from $30 per month.
• Year Founded: 2014
• Suitable for Beginners: Yes, (includes easy to follow videos updates).

-ForexSignals.com Trading Room: Best Forex Signals

• Verified Statistics: Yes
• Price: from $97 per month
• Year Founded: 2012
• Suitable for Beginners: Yes

-Digital Derivatives Markets: Transparent Signals Provider

• Verified Statistics: Not independently verified.
• Price: plans from $74.40 per month.
• Year Founded: 2014
• Suitable for Beginners: Yes, (includes easy to follow trade analysis)

-1000pip Builder: Signal Provider

• Verified Statistics: Yes
• Price: $97 per month + save an additional 30%. Claim Now ?
• Year Founded: 2016
• Suitable for Beginners: Yes

-Traders Academy Club: Best Value Service

• Verified Statistics: No
• Price: $97 per year - Join Now ?
• Year Founded: 2011
• Suitable for Beginners: Yes

-Forex Mentor Pro: Trading Education

• Verified Statistics: No statistics provided
• Price: from $16.40/month paid annually, or $47/month-to-month
• Year Founded: 2008
• Suitable for Beginners: Yes (includes systems and training videos)

-Baby Pips: Best Forex Community

• Verified Statistics: No - free service offering market feedback
• Price: Free
• Year Founded: 2005
• Suitable for Beginners: Yes

-Honest Forex Signals

• Verified Statistics: No
• Price: $177 per month
• Year Founded: 2011
• Suitable for Beginners: Yes

-Daily Forex

• Verified Statistics: No - free service offering market feedback
• Price: Free
• Year Founded: 2006
• Suitable for Beginners: Moderate

-Forex Peace Army

• Verified Statistics: No - free service offering market feedback
• Price: Free
• Year Founded: 2006
• Suitable for Beginners: Moderate

References

https://www.myforexchart.com/best-forex-signals

Important Forex Knowledge you need to (Margin/Leverage)

Like any new skill you learn, you should learn it's basics to better practice this skill and to make a good path on it.

There are many important things you should know about Forex trading. may be you know it so no problem at all as you can review this knowledge again.

How to Make Money with Forex?

Major Currencies

The major currencies are the most eight traded currencies"the most important currencies"and of course the most widely used in the world.these currencies are:

• USD
• EUR
• JPY
• GBP
• CHF
• CAD
• NZD
• AUD

Minor Currencies  

Minor currencies are any other exist currencies "Not Major" so we can say that all currencies are minor except the eight major we mentioned previously.

Margin 

  

When opening a new margin with any trade broker"trading platform" you should have amount of money"beginning deposit" and this amount varies from a platform or a broker to another, it could be 50$ or 100$ but for sure 50$ is the minimum possible deposit in most of the platforms.

The maximum deposit is unlimited as you can trade up to 100,000 or even millions.

What is a Pip and a Pipette in Forex?

When you open a new trade an amount of your money goes a side as initial beginning deposit for this margin.

This amount is based on:

• The currency pair you choose to trade on.
• It's current price.
• Number of units to trade.

For example, if you were to open one mini lot so instead of having to provide 10,000$ you would only need 50$(10,000$*0.5%=50$) with a (200:1) leverage or  0.5% margin.

Leverage

 Leverage is the ratio of the capital amount to used to the required security deposit "margin".

This means that you can control large amount of dollar with a small amount of capital.

Leverage varies with different brokers and in different trading platforms ranging from 2:1 to 500:1

Related Posts:

➤ Maximize your Forex Trading profit through new Technical Indicators

How to Make Money with Forex?

Placing a trade in the Forex market is very easy even if you don't have previous experience with the process.

The main objective of the Forex trading is exchange of one currency with another expecting it's price will change as the currency you bought will increase in value compared with the one you sold.

Let's take a simple example for that:

• You purchased 10000 euros at EUR/USD exchange market with rate 1.1900
• After one week you exchange your 10000 euros back to us dollars with rate 1.2600
• That means US dollar has increased 0.07 against Euro.
• Your profit = 0.07 * 10000 = 700 USD

Exchange ratio means the ratio of one currency against another currency.

How to Read a Forex Quote

Currencies always put in pairs like EUR/USD because in every Forex transaction you are buying currency and selling another.

What Is a Currency Cross Pair ?

• GBP : British Pound
• USD : American Dollar

The first currency to the left is the base currency (GBP) while the other to the right is the quote currency (USD).

In buying this means how much units you have to pay from the quote currency (USD) to buy one unit of the base currency(GBP) and in previous example you have to pay 1.51258 US dollars to buy 1 British pound.

In selling it means how many units of the quote currency (USD) you will get for selling one unit of the base currency(GBP) so you will receive  1.51258 US dollars when you sell 1 British pound.

The base currency is the basis for buying or selling.

Long / Short 

• First you have to determine whether you want to buy or sell.
• If buying(means buying base currency and selling quote currency)then you want base currency to rise in value so you sell it in higher prices.
• If selling(means selling base currency and buying quote currency)then you want the base currency to fall in value so you can buy it again with lower price.
• Long = Buy 
• Short = Sell

Bid / Ask and Spread

All Forex trades have two prices :

• The bid is the price you willing to buy the base currency in exchange with the quote currency.
• The ask is the price you willing to sell the base currency in exchange with the quote currency.
• In general, bid price is lower than ask price.
• The difference between ask price and bid price is called spread
• SPREAD = ask price - bid price

Why Trade Forex: Forex Vs. Stocks

There are approximately 2800 stocks listed on the New York Stock exchange so will you check all 2800 stocks to know which one you will trade on ??

In currency trading, there are some of currencies traded, but market players prefer to trade the four major pairs.

Four pairs are  easier to trade than thousands of stocks, aren't they ??

Here are some of advantages of Forex market over Stocks market:

1- 24 Hour Market 

The Forex market is open for 24-hour. Most brokers are open from Sunday at 4:00 pm until Friday at 4:00 pm , with customer service usually available during this period.

also with ability to trade in U.S., Asian, and European market hours.

2- Minimal-No Commissions  

Most Forex brokers charge no commission or additional fees to trade currencies online or in the phone.

Forex trading costs are lower than other market.

3- Instant Execution of Market Orders 

Your trades are instantly executed under normal market conditions. Under these conditions, usually the price you see when you execute your order is the price you get.

Keep in mind that many brokers only guarantee stop, limit, and entry orders under normal market conditions.

Forex Trading Order Types

4- Short Selling 

Unlike equity market, there is no restriction on short selling in currency market. Trading opportunities exist in the currency market whether a trader is long or short, or whatever way the market is moving.

Since currency trading always involves buying one currency or selling another, there is no structural bias to the market. So you always have equal access to trade in a rising or falling market.

5- No Middlemen 

One of the most problems in exchanges is middlemen and any third party between trader and buyer will cost them extra money "time or fees".

On the other hand, Spot currency trading is decentralized, which means quotes can vary from different currency dealers.

6- Buy-Sell programs don't control market 

How many times have you heard that “Fund X” was selling “Y” or buying “U”? The stock market is very susceptible to large fund buying and selling.

In spot trading, the large size of Forex market makes the probability  of any one fund or bank controlling a currency very small.

 Maximize your Forex Trading profit through new Technical Indicators

Choosing Forex Brokers in USA 2019

The US dollar is one of the most powerful currencies in the forex trading system. It is actually one of the most basic trading values used in this specific market. So if you are new in the market and you would like to learn the ins and outs of the US dollar trading, you might be able to boost your profits with the help of forex brokers in USA. Forex brokers serve as the middle man between two different parties-you and your buyers or sellers. They can also give you their consultancy services in the process.

You can choose to either get in touch with forex brokers in USA as a consultant or you can also choose to employ them as your trading partner. Either way, they can be an asset for you if you know how to use their influence and expertise accordingly. Two of the most important things that you need to understand when choosing your US forex broker is the forex spread which they currently use and the reputation as well as the capital they have to sustain them.

Utilizing the Forex Spread through these Brokers

A forex spread is actually the method of trading in itself. When you trade with people in the currency market, each network you have can be considered as a spread. But when you make use of forex brokers, they use a number of spread methods to make sure that you get more exposure which can also translate into more profits for them. The term is coined as spread because it makes efficient use of scanning the market for potential customers. But one thing you should keep in mind is that its different spread strokes for different forex brokers.

Forex brokers in USA may or may not publish their prices on their site. This is actually an important point to consider because it helps you understand how much profits you can gain out of them when done in comparison with spreads. There are actually two different types of forex spreads-the fixed spread which makes use of a fixed method and currency rates regardless of the trading time and the variable spread which may depend loosely on the current scene in the trading market.

Reputation and the Brokers' Capital Resources

Of course there's also the issue of choosing your broker depending on the reputation they have. Reputation is important especially if you want to expand your networks. You will also be surprised how some potential business partners may choose to not deal with you if you have a forex broker who's professional ethics are questionable. In the world of forex, it may not always be about profits.

Another important consideration is capital resources, because it gives you an idea of the rates and features you will get to enjoy through the forex broker you choose to hire. Some may be able to waive your fees and there are also those who will be able to connect you with other rising forex markets. They may end up to be a wealthy source of vital business information.

Want to succeed in the forex market?

That sure is possible now with the best online forex trading news place on the web.

Now you can be updated with the most trusted forex brokers out there with: online forex review scam

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