Creating a successful Currency Trading Business Planner is most likely the most important step completely overlooked by most people wanting to profit trading currency. Without a carefully constructed and realistic Forex business plan, your chances of long term profits as a currency trader are very low. In the rest of this article, I'm going to explain why creating a business plan for Forex is so important, and how you can build a profitable plan.
Don't Confuse A Forex Business Plan With Your Trading Plan
Without a doubt, most people trying to learn to trade Forex spend most of their time learning strategies and systems. The truth is, the majority of the time is spent on learning entries to trades. From a traders viewpoint, there is much more to successful trading, like the use of proper money management and developing the traders mindset. So, just focusing on entries is not the only thing necessary to become a successful trader.
If you don't have a complete trade plan that covers all aspects of your trading, you should spend some time to create one. You trading plan includes all the rules for entering and exiting the market. But don't confuse this with a Forex business plan.
Treat Your Forex Trading Like A Business
The first thing you must do is start treating your Forex trading as a real business. Undoubtedly, you want to trade Forex to make money. You are investing money and time, and you want to make a return on that investment. Therefore, you need a plan to calculate what you should expect to gain from your trading, how much time it is going to take and how you are going to systematically achieve your goals.
Think of it like this. If you were planning a trip you would make a plan. You would figure out how far away your destination is, what the speed limits are on the roads you'll travel and what obstacles you are likely to face. With this knowledge, you can reasonably calculate how long it is going to take to reach your destination and what is expected on the trip. A Forex business plan is much like planning a road trip.
Elements Of A Forex Business Plan
The basic, essential elements of your business plan are your starting balance, what your expected gains are on average every month and a final income goal. This gives you a stating point and an ending point. You'll also need answer "how" you are going to produce this average monthly goal, either by doing the trading yourselves or using a signals service.
I believe one of the reasons people fail to create business plans for Forex is they don't know what to reasonably expect. Since they are not already profitable traders, they don't know what to realistically expect. This leads to entering the market without a plan. They don't know what returns they should expect and are unable to calculate how long it is going to take to reach their goals. More often than not, this leads to failure.
To create a realistic and achievable Currency Trading Business Planner, I've created some free training to help you out. I provide the guidance needed so you can align your expectations with reasonable goals. A spreadsheet is provided for you to calculate your "life changing income" and how long it will take to achieve your Forex trading goals. After going through the training, you'll have a realistic and achievable Forex business plan in hand.
No comments:
Post a Comment