Your Monthly Forex Trading Plan

Your Monthly Forex Trading Plan

If you are new to Forex trading, you may not know how to get started or how to make a plan of attack. Well, as somebody who has never traded before, or is still in the beginner stages, putting together a monthly Forex trading plan is essential to your success.

The fact of the matter is that trading Forex is not easy. This is indeed quite hard, and it takes a good deal of skill, patience, knowledge, and planning to be successful. Simply put, analysis, planning, and research are half the battle. If you can properly analyze the market and make a solid plan of attack based on your findings, things will go much better.

Sure, some of the most seasoned trading professionals may be able to just sit down in the morning and start trading. However, these are people that have plenty of experience. For everybody else, you first need to make a solid plan, or in other words, a monthly Forex trading plan.

Monthly Forex Trading Plan

You need to sit down for a few hours at the beginning of the month, maybe for a full morning, and really take your time analyzing the market. If you spend a few hours putting together a monthly Forex trading plan, things will be much easier. If you have a solid plan of attack, you won’t need to spend as much time each morning doing research before you begin your session.

For those of you who don’t know what goes into making a monthly Forex trading plan, no worries, because that is exactly what we are here for right now. Let’s get right to it and talk about the five most important components of your monthly Forex trading plan.

Analyze the Current Market Structure

The first aspect of your monthly trading plan is to analyze the current market structure. You need to identify multiple market factors including various support and resistance zones, trend lines, major pivot zones. Simply put, you need to see what the structure of the market is like.

Not only do you need to analyze market structure, but you also need to analyze the structure of the market of the previous month, and you then need to compare the two.

The past often dictates the future, so if you can find out what the current state of the market is like, it becomes much easier to put together a monthly Forex trading plan, as well as a weekly and daily plan.

Monthly Forex Trading Plan

 

Make A Plan for Daily Trading for Your Monthly Forex Trading Plan

For your monthly Forex trading plan, a good idea is to actually create a daily trading plan. Of course, a monthly plan is great for providing you with the big picture, but you also need a daily plan for every day of trading. Remember, the more planning and research you put into Forex trading, the more likely you are to be successful.

A big part of this is deciding which currency pairs you plan on trading with, and of course, the current market structure, as well as the following points below will help you determine this.

Moreover, this also means developing a solid trading strategy, one that either you have developed, or someone else’s strategy. As long as it is a proven strategy that takes care of how to enter trades, when to exit them, and where to set stop loss and take profit levels at, you should be fine. What’s your trading strategy?

 

Pay Attention to the Upcoming Week’s News

One of the most important things that you need to factor into your monthly Forex trading plan is fundamental news, and not just for the coming day, but for the coming week. In order to examine fundamental news, we recommend checking out the economic calendar on investing.com.

Here, you will see various news releases associated with specific national currencies, whether one star, two star, or three star news.

Three star news is often referred to as three bull news, and this is what you need to look out for. If you see that a currency, say the Euro, is slated for a three bull news release at 11 am, it means that you should not have any open trades with the Euro at that time. Also, don’t open any new trades with that currency for at least one to two hours after the news release.

 

Look for Patterns in the Previous Month

The next thing that you need to do in order to put together a comprehensive monthly Forex trading plan is to take a look at one day, four hour, and one hour timeframes, particularly for the previous month, or at least the previous week. Here, you are looking for patterns such as trends.

You want to look for patterns on all of the timeframes, and moreover, you want to see if there are patterns that are related across various timeframes. If you see patterns occurring across various timeframes, you can assume that they may continue into the future, and thus provide you with profitable trading opportunities.

Monthly Forex Trading Plan

 

Set Realistic & Attainable Goals for Your Monthly Forex Trading Plan

The final aspect of your monthly Forex trading plan is to set attainable goals for yourself. You can decide what your goals are for yourself, but just don’t set them too high. If you set unattainable goals, you will undoubtedly be disappointed and disheartened when you inevitably fail to achieve those unrealistic goals.

Monthly Forex Trading Plan

A Monthly Forex Trading Plan for Success – Conclusion

The bottom line is that something like a monthly Forex trading plan will increase your chances of success exponentially. If you take the time to do research, to analyze the market, and to find the best possible trading opportunities at the beginning of the month, your life as a Forex trader will become much easier.

As long as you incorporate all five of the factors we just discussed, your monthly Forex trading plan should be comprehensive and accurate enough to allow you to trade FX currency pairs with relative ease. Of course, this is not a fool proof plan, as you do need to know what you are doing.

We do realize that some of the components of this plan, such as analyzing trends, as well as support and resistance lines, takes a bit of know how.

If you don’t know how to do this, it is strongly recommended that you seek an education in Forex trading. One of the best sources to get a comprehensive education in Forex trading is the Income Mentor Box Day Trading Academy.

CLICK BELOW TO JOIN INCOME MENTOR BOX AND START MAKING REAL PROFITS!

Making a Daily Forex Watchlist

Making a Daily Forex Watchlist

If you are a beginner in the world of Forex trading, you might be having a bit of trouble making money. Realistically, if you are totally new to FX trading, and you don’t have much of a knowledge base, chances are that you are actually losing money. However, even as a total newbie, something that you can do in order to increase your chances of success is to make a daily Forex watchlist.

The fact of the matter is that FX trading is not easy, not in the least. It takes the right knowledge and patience, plus the right timing is very important as well. Sure, plenty of traders, particularly the seasoned veterans, will trade without a so called daily watchlist. However, the most successful of traders do use a daily Forex watchlist.

Now, this is nothing too groundbreaking or revolutionary. Realistically, it is nothing more than a conglomerate of information, a plan of what you will trade throughout the day. People, a lot of what Forex trading is all about is planning, strategy, and analysis. If you take a few minutes in the morning to put together a daily Forex watchlist, you can then simply follow it and execute your strategy.

Today, we are here to talk about the five most important components that go into making a daily Forex watchlist. There are five main components that your watchlist needs to include. Now, these are nothing overly special on their own. However, when the five components that we are about to discuss come together, they provide you with the required foundation for a successful day of currency trading.

Analyze the Past Week & Look for Opportunities

The first thing that you should do when creating your daily Forex watchlist is to analyze price action of the past week in regard to certain currency pairs. You should take a close look at the one week timeframe to analyze what happened in the last week.

You want to look out for all of the basics like price range, price direction, trend, reversals, and all of that other fun stuff too.

Knowing what the price of a currency did in the past may reveal useful information about future movement. You may even look at a one month timeframe, although for these purposes, looking back one week should be enough. This way, you can get a good idea of what the market is doing and what specific Forex pairs that you might want to focus on.

Daily Forex Checklist

 

Pay Attention to Fundamental News for Your Daily Forex Watchlist

The second component of your daily Forex watchlist should be fundamental news. In fact, this is perhaps one of the most important components of all. The fact of the matter is that politics, economics, industry, and everything in between, it’s all related.

Therefore, you want to pay close attention to fundamental news releases. Specifically, we would recommend going to investing.com, and checking out their economic calendar. Here, you will see news releases associated with national currencies.

For instance, you might see a news release happening at 1 pm for the USD. Now, what you are really looking for here is Three Bull News, which signals a major news release that will have a big impact on the economy.

As a newbie trader, the important thing to know here is that you never want to trade during Three Bull News with the associated currency. Using our above example, this would mean that when 1 pm hits, you don’t want any open trades with the USD, and you also don’t want to open more positions with the USD until one to two hours after that news release.

Daily Forex Checklist

 

Set Up an Alert System

The third component of your daily Forex checklist should be your alert system. An alert system, such as the free ones that come with MetaTrader and Tradingview.com, will alert you of certain events. In other words, you could set an alert so that if the price of the EUR/USD hits a certain point, you get notified.

This helps make life much easier because it means not constantly having to pay attention to various Forex currency pairs. Simply set up your alerts as needed (which means that you need to know at which price you would want to trade at) and wait for the alert. Once the alert sounds, you can then place your trade.

 

Choose Your Currency Pairs for Your Daily Forex Watchlist

The next thing that you need to do is to pick the specific currency pairs that you are going to focus on. This is very important for creating a coherent daily Forex watchlist. Now, there are of course hundreds of currency pairs, but there are only seven that you as a newbie should be dealing with.

Five of the most major and safest pairs to trade with are EUR/USD, USD/CAD, USD/JPY, GBP/USD, and AUD/USD, with USD/CHF being another big one. Folks, it’s all about quality, not quantity, so focus your efforts on a few relatively safe pairs, and then go from there.

Daily Forex Checklist

 

Review the Plan & Set Realistic Goals

The final component of your daily Forex watchlist is your own plan and goals. Simply put, you need to hammer out a solid trading plan and strategy, something proven to work, something that you feel confident in. Moreover, it’s fine to set goals for yourself, but make sure that they are realistic. If this is your first day trading, don’t expect to start raking in cash immediately.

Daily Forex Checklist

Your Daily Forex Watchlist – Final Thoughts

As you can see, by themselves, the five components of a good daily Forex watchlist are not anything super cool or anything that people have not seen before. However, when these components come together, they form a solid daily Forex checklist.

In other words, this is your analysis and your trading plan for the day. It’s your game plan that you will use to place all of your trades, the rules you will follow, and so on and so forth.

All of that being said, if you don’t have any prior experience with Forex trading, we recommend seeking a decent education. It definitely helps if you have an education on the matter, so you at least understand the most basic concepts.

CLICK BELOW TO JOIN INCOME MENTOR BOX AND START MAKING REAL PROFITS!