First and foremost, you must define your goals. In other words, you will need to know what you plan to achieve from your trading experience.

Instead, some traders do it for fun, a hobby, or a competitive game. So consider these factors as well. If this is the case for you, then you need to know it before you start trading. Maybe it gives an advantage over other participants in the forex market. Before you make your first trade in the forex market, you first must understand the trading jargon and the different analysis methods. If needed, take a quick trading course to learn how the forex or the stock market works, read articles, books, financial sites, etc.

Additionally, you better explore the two methods to analyze financial assets — technical analysis and fundamental analysis. Then, find the best way for you to analyze the markets and read forex charts. Additionally, you can learn how to read popular chart patterns and use them to find trading opportunities.

Once again, you have to try before you know it… go ahead and try. There are no two traders that are precisely the same. Therefore, you must find your own trading strategy and trading style. And this is a result of trial and error. For that matter, you need to use a trading plan at the beginning of your journey to find the right strategy that matches your personality.

Trading risk management is a predefined strategy to minimize losses and maximize profits. There are lots of tools and risk management rules a trader can use to protect themselves from losses and effectively manage their trading account. In other words, it is a method to define your trade risk, that is how much risk you are willing in a trader, or in a day the method is particularly for day trading.

Trading is not like most professions. The markets always change, the technology evolves, and even the dynamic of the markets is constantly changing.

Trust me, financial markets are not the same as they used to be fifteen years ago, and most likely, they will change again in the future. I mean, the cryptocurrency market is one good example of the unpredictable nature of the trading world and financial markets.

This way or the other, you must read trading books and articles, watch movies , listen to podcasts — everything you can do to increase your knowledge.

Yes, knowledge is power, but in trading, knowledge is essential. In the final step, make sure you analyze your trading past performance and keep track of your winning and losing trades. Writing down your losing trades is a punch to your ago, but it will help you improve your performance and trading decisions in the future.

By doing so, you can learn your worst-performing days of the week, hours, financial instruments, etc. George Soros. To sum up, we have created a trading business plan template that you can use for free in the format of your preference. In a nutshell, every trader must have a well-defined solid trading plan. Developing an organized trading system is the first step in becoming a professional and successful forex trader and will increase your chances of success over the short and long term.

For now, you can use our free forex trading plan template to start with. Usually, the process is quite straightforward. If you are trading currency pairs where USD is the second currency quote , then the cost should be multiplied by the currency pair's rate e. The next step is to apply your leverage — just divide the cost by your leverage. Then multiply the result by your position size, and you have the required margin. The current rate is 1.

Your leverage is and position size is 0. There are some exotic cases when margin is calculated differently, but this is beyond the scope of this checklist. You can install the Position Sizer EA for MetaTrader to calculate the required margin of future trades automatically. It may sound like a no-brainer , but many costly errors have been experienced even by professional traders who accidentally opened a right position on a wrong trading instrument.

Double check that you are opening a trade for the correct currency pair — some brokers may have several symbols for the same pair, which differ by margin, contract size, or swaps. Mistyped pending entry level, a stop-loss , or a take-profit may result in hefty losses for your account.

Double check that you have the right values in. It is one thing to calculate the optimal position size. The act of similar importance is to make sure that the right value has been entered into your platform's new position form.

Most traders prefer GTC good-till-canceled orders but sometimes, expiring orders are appropriate. If your strategy calls for such an order, make sure you are setting the right expiry date and time. Setting maximum tolerable deviation of the actual market order entry price from the planned one can help you to avoid slippage that is too big for your trading strategy. The right one. Make sure you are not canceling the trade or pressing some special button that doubles the trade's volume or something like that.

Look at the entry price and the resulting volume. Slippage could have affected the former; poor liquidity could have made the volume lower than you have planned for. If you have developed your own Forex trading checklist, you can share it with other traders on our Forum. These checklists can be incredibly useful and act as a very quick way to make sure you are staying on track. Below is an example of what you could include in your own trading plan checklist. You can also download a PDF trading plan checklist below to help you create your own.

A trading plan and trading checklist does not have to be a huge page document. As we have just gone through you can create a one page simplified trading plan and turn it into a PDF that you sit beside your computer. This along with your trading checklist will make sure you stick to your trading rules and stay on track. You can access and download the one page trading plan example and trading checklist to help you create your own using the button below.

I hunt pips each day in the charts with price action technical analysis and indicators. My goal is to get as many pips as possible and help you understand how to use indicators and price action together successfully in your own trading. Skip to content. NOTE: Get Your Free Trading Plan Templates Below. Table of Contents. Pip Hunter I hunt pips each day in the charts with price action technical analysis and indicators.

Forex Checklist. Useless Poor Ok Good Excellent Excellent. Select a Broker Check what other traders say about the broker. Check the home country of the broker. Check what regulatory organizations they are registered with and what protections this affords you.

Check if client funds are insured against fraud. Check if client funds are insured against bankruptcy. Account Check the minimum balance required to open an account. Check the minimum trade size. Check if you can adjust the standard lot size traded. Check if you can you earn interest on the unused margin balance in your account. Margin Check the margin requirement.

Check if it changes for different currency pairs or days of the week. Check if the broker increases it in volatile market conditions. Check at what point the broker will issue a margin call or close open positions.

Check if the same applies for standard and mini accounts. Trading Check reliability during fast moving markets and news announcements. Check how many different currency pairs you can trade. Check for any special features. Spread, Slippage and Commissions Check how tight is the spread. Check if it's fixed or variable. Check if they charge commissions. Execusion Check the business model they operate.

Check how fast is their order execution. Check if the orders are manually or automatically executed. Check what is the maximum trade size before you have to request a quote. Related Checklist Templates:. By Startup Checklist On May 24, By Lauren Meir On May 16, By John F. Smith On Dec 29,

The one thing all serious traders have is a Forex trading plan. The most liquid currency pairs are therefore the ones in high demand. More specifically, the spot trade is a spot transaction, with reference to the sale or the purchase of a currency. Determine the time period when the entry level would be valid. Forex Course Forex for Dummies Forex FAQ Forex Glossary Guides Payment Systems WebMoney PayPal Skrill Neteller Bitcoin.

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