In this Forex trading vlog, I share with you a trading plan tutorial on how to organize your Forex trading plan on a single sheet of paper. This is a format I developed after being stuck creating a trading plan that was too complex. Vlog #210
One-Page Trading Plan Template Tutorial…
The format of this trading plan is meant to simplify your trading methodology.
You might have heard before “the best trading strategies are the ones you can write on a napkin.” I'm a big believer in that.
With that principle in mind, I want you to print out this template. If you want to use a blank sheet of paper.
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Your One-Page Trading Plan should contain 3 major parts:
- At the top, your vision
- In the middle, your trading strategy (create one of those plans per strategy)
- At the bottom, your money management & implementation plan
Let's now dive into each section…
Resources Mentioned In This Trading Plan Tutorial
Define Your Vision
If you don't have the right reasons to succeed in trading, why should you bother trying?
Your vision represents what you want to achieve from trading. You can decide to make this vision process-oriented or outcome-oriented.
The purpose of having your vision on your One-Page Trading Plan is for you to be reminded of it every single day (or before entering a trade).
By being clear on your vision, it'll be easier for you to make the right decisions (i.e. sticking to the plan instead of taking profits early).
So write out a few lines in regards to what you want to achieve.
Simplify Your Trading Strategy
This part is fairly straight-forward…
By now, you should have come up with backtesting results and compiled them into a Forex trading playbook.
What you'll want to do is to write down on your One-Page Trading Plan the setup, entry, and exit of your trading strategy.
Money Management & Implementation Plan
Even the best trading strategy wouldn't be complete without a money management plan.
You should spend some time getting familiar with the concepts of money management. Then come up with the % of your account you are going to risk per trade. This is based on the Risk-Of-Ruin.
This will lead to helping you define your maximum drawdown. If you have a minimum reward-to-risk you're looking for in any given trade, write it down as well.
The implementation plan concerns how you intend to progress with this trading strategy:
Are you going to trade it demo for some time? Are you going to start on a small live account? What reward/punishments are you going to use for proper execution?
So that pretty much sums it up for the One-Page Trading plan tutorial. Once again, do not forget to grab the template if you want to save a few hours!
What advice would you give someone creating his first trading plan? Comment below and we'll chat!
If you are aspiring to trade for other people while traveling, you might want to consider checking out the Desire To TRADE Academy where I’ll help you do precisely that!
If you are aspiring to Forex but wonder how to put together a solid trading plan, I recommend you grab my FREE One-Page Trading Plan Template. It will help you simplify your trading strategy on a single page!