Trading is a business. Treat Trading like a business. Every successful business has a plan. Without any plan, no business can be successful. So as in Forex Trading also. A beginner $100 Forex trading plan will be successful if you follow a trading plan strictly.
All the traders should make a trading plan and trade according to this. Obviously, it depends on a trader. What kind of trading he is doing? Which strategies does he follow? What are his targets, goals, and achievements? But there are some mandatory key factors that every trader should follow. Otherwise, he will never be successful in trading.
There is a misconception that you think or most of the traders think that if they know everything about trading. It will be easy for them to trade. But in reality, the answer is a big NO. As you learn so many things about trading. You are getting complicated. The more information you have the more difficulty you face in creating a trading plan.
Why Beginner $100 Forex Trading Plan Is The Best Plan For You?
The majority of traders are losing their money because they don’t have or don’t follow a plan. There is no rocket science or mystery about why are they losing money in trading. There are a lot of successful traders who are trading with a plan. The number of their losing trade is more than their winning trade. But they are still in profit. Because they book more profit than the loosing one. It is only possible when you have a trading plan and follow it strictly.
There are so many key factors in trading in forex like money management, risk management, risk-reward ratio, strategies, trading psychology, forex broker. A proper Trading plan needs all of these factors. You can apply this in your plan with at least a minimum investment of $100 dollars.
Because less than that money the risk management and the money management will not work properly. As a result, you blow up your trading account. That’s why as a beginner $100 forex trading plan will be a better and perfect plan for you.
Beginner $100 Trading Plan Step-by-Step Guide Line
Trading Strategies
No trading is complete without a strategy. You must choose a strategy. It is the first and foremost thing in a Trading plan. The Trading strategies can be different from one another. It totally relies on your Trading skills and Trading category. A day trader uses a different strategy from a scalper. Because their trading timeframe is different from one another. That’s why the trading plan is also different.
The trading strategy you choose will have to suit your trading as well as a high winning ratio. If you choose a strategy with is low winning ratio. Then no matter what you do. You face difficulties in making your trades in profit.
VSSNR (Very Strong Support And Resistance)
Emotion Control
In the market, the big players or market makers run the market. So you can understand you can not make a profit all the time. It’s not about winning or losing. It’s about being profitable. But when you lose a trade. Then you try to fight against the market. In trading the market is not your biggest enemy. Your emotions are the biggest enemy. Always try to control your emotions when you lose a trade. Emotional decisions can be very problematic and can end your trading career in financial markets. Take a break for some time or for a day when you lose a trade. Set a specific number of trades. No matter what win or lose. Don’t trade more than that number.
Money management
Money management is one of the main element in trading the market and keep you alive even when you do face losses. If you start your trading with 20 dollars. You can not trade with proper money management. Then after losing that money, you have to deposit again to trade. So trade with 100 dollars at least to set proper money management.
Basically, money management is managing your capital while facing losses. Remember trade only on that amount that you are ready to lose. Always use a stop loss and take profit targets. Don’t try to trailing stop losses. It can be very dangerous. If you lose that trade. Accept it and let it go. Never greed for more. If it hits the target. Take profit and enjoy your gains.
Risk Management
Risk management helps reduce losses. It can also help protect a trader’s account from losing all their funds. Risk arises when a trader experiences losses. If risks can be managed, traders can make money on their own in the markets.
Use only 1% of your total capital for each of the trades. Don’t try to use the martingale method if you lose the trade. In this way, you need 100 continuous losing trades to blow up your account. Which is not possible at all. You may lose some trades but with a perfect risk-reward ratio you will recover that losing money from the winning one.
Risk-Reward Ratio
Risk-Reward ratio and Strategies are correlated with each other. Let me explain. A good trading strategy will give you a high risk-reward ratio. A high risk-reward ratio is very important to turn your losses into profits. Try to use a 1:3 Risk-Reward ratio. It will help you recover your losses. For example, if you lose three trades in a row. And win the fourth one. All of your previous losses will be recovered in the fourth one. So try to use this risk-reward ratio with a good trading strategy.
Forex Brokers
Forex brokers are also a very important part of your trading journey. As you will be used to a particular broker. That’s why always trade with a broker who is reliable, trusted, and well-reputed in this industry. Moreover, you have to look over other matters like commissions and spreads. A lot of brokers offer high spreads. For that many traders have to suffer a lot. A high spread always has a possibility of touching the stop loss quickly and causing unexpected losses. For those reasons, some trader lose their emotions and start revenge trading. That’s why always trade those broker who has a low spread or no spread like
Trading Psychology
Trading psychology in Trading means a mental state to control and overcome the situation when you lose a trade. It happens mostly in new traders. After a losing trade, a lot of things are happening at that time. So the best practice in that time is to accept the loss and expect realistic goals. As I mentioned before trading is like a business. In business sometimes we have profit sometimes loss. Then we had nothing in our hands if we had losses. So as trading. When we lose any trade. Just think of it as a process of trading. Loss is a process. The process of your next winning trade. So be calm.
Conclusion
A beginner $100 dollar forex Trading plan doesn’t guarantee you make a million overnight. Obviously, you can but it takes time. Discipline and consistency is the key. Follow your plan with discipline and consistency. Some people think that trading is a quick millionaire scheme. But it is not. You become rich quicker than any side hustle no doubt. But not overnight. This plan helps you go and walk on the right path. Helps you to stay in the market in the long run. But all these things you have to do by yourself.