Forex Books

those are some trading psychology books ⬆️

A basic trading plan includes: * Mental preparation (enter confident clear state of mind for trading) * Bias method (how you define the current trend, example using EMA trend, Level count, Breaker to Breaker concept, Market Structure e.t.c.) * Entry and exit rules (SL & TP management example trailing stop or fixed target). * Risk management (percent risk per trade) and position sizing rules (lot size according to equity). * Setups that you trade and their rules/confluences/conditions for entry. * Time of trading (trading sessions you trade). * Timeframes that you trade. The trader may add additional rules at their discretion to control when and how they trade.

Trading without a trading plan is like going two steps forward and then 3 steps backwards.

A trading plan helps with trading without psychological errors and helps to get consistent results.

Without trading with a trading plan you will be trading same setups differently every time, sometimes you will use your emotions to trade them, thus getting inconsistent results. But if you have a trading plan the rules will be written in it clearly and you will trade with the same rules consistently without emotions hence following your trading plan consistently and trading your strategy consistently. Consistency is the key to being profitable, since if your strategy showed example 80 percent win rate then you will get the same win rate if you trade consistently following the rules of the setups your strategy teaches. but if you trade inconsistently following different rules everytime for same setup, you will get inconsistent results, mostly lower win rate to unnecessary losses.

Example if you go to start a business without a business plan its like gambling you may fail much easily to not follow particular good rules to succeed in your business because you did not plan well before and you dont have it written somewhere or memorized.

Two traders may have studied same course but Trading plans are personal so they can be different.

TRADING PLAN: Before going on charts to trade you have to have a trading plan, Dont forget to write your personal trading plan of the setups you are going to trade. after some time you will have memorised it well but for the first trades you will have to be with it near you and it should be short and not confusing.

This is a summary i made, so if you don't understand the points given you can search about them in other places like google, youtube or books. Example you dont know what is leverage in money management, you can search on google or youtube "what is leverage in trading forex?" to know its association with money management.

You can study it after this topic of Trading Psychology

Take this as the Money Management topic i forgot to explain it here before in @btmmflash . 👍

Mark Douglas - 7 - Retrain Your Brain

Mark Douglas - 6 - Probabilistic Principles

Mark Douglas - 5 - Emotional Response

Mark Douglas - 4 - Probabilities

Mark Douglas - 3 - Objective State of Mind