A good trading plans is about good money management, money management is the most important aspect of your trading as if you fail in trading. Your success or failure as a forex trader depends greatly on your trading plan. Give it your maximum attention and consideration. This is a very personal thing and only you can write your own plan.

A good trading plan should include strategies for

• Profit Maximization and loss Minimization
• Your risk profile.i.e. how much are you willing to lose on a trade? hence your stop loss policy.
• Risk reward policy. It is important to establish your maximum exposure.It is accepted that your exposure should never exceed 5-10% total risk capital.
• Number of trades planned per week / month – important so you are not glued in front of the computer 24 hours a day.
• A budget.
• Well defined entry and exit strategies.
• Maintenance of sufficient capital.
• How you handle moving stops,and add to existing trades.
• Diversification – i.e. Trade one currency pair or more.

There are trading plans developed by expert forex traders that you can follow. If you choose to go the way of “canned” trading plans developed by others, make sure they are actual professional traders who have out their trading plans to work in the market.

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