Developing your Trading Process

From Volatility.RED

Your trading process will be unique to you. However, there are some common these that are universal to all successful traders. In this Wiki, we will explore the trading tools and routines that you will need in order to trade effectively in the markets.


This Wiki is a part of the Essential Forex Trading Guide series so be sure to check that out!



Developing your Trading Process

Introduction

In this Wiki, we are going to put everything you have learned together from the Essential Forex Trading Guide into an actionable trading plan that you can use every day in the markets. The basic principle that you need to always keep in mind is that you should be looking to apply these principles over and over again in your trading.

The main themes of this Essential Forex Trading Guide are as follows:

  • You need a good understanding of the overall markets and not just how to trade Forex specifically. The different markets that we have talked about are interrelated and are terms that you will come across almost every day in your research.
  • [[Fundamental_Analysis | Fundamental][ and sentiment analysis should be the foundation of every single trade you take. The key to fundamentals and sentiment is understanding the reasons behind each price move in the markets.
  • Risk Management should be incorporated into every single element of your trading business so that you have multiple risk defences protecting you from losses at all times.
  • Technical Analysis should only be used as a simple method of visualizing a trade to give it structure. All technical concepts are more or less the same when it comes to their effectiveness.
  • Trading psychology should be your number one focus once you have the 6 essential elements of Forex trading understood and the skillsets learned. Working on your inner game is the key to consistent profitability. The ultimate goal for you is to be trading in the zone at all times.


Everything in the Essential Forex Trading Guide is more than enough knowledge for you to create a trading plan that you can use to start developing and practicing your skills further. Remember, just like buying the best golf clubs will not make you good at golf, consistently hunting for more and more knowledge will not make you a better trader. You need the knowledge first, practice and skill building second, followed by working on your inner game from that point on.

With all this in mind, it’s time to create a trading plan so that you can move on from the knowledge-building stage and on to the skill-building stage. There are several things that we will be focussing on in this Wiki on developing your trading process but the main goal will be to build up a routine that you can follow every day no matter what the market conditions may be.

Your routine should be comprised of 4 distinct elements:

  1. Knowledge phase
  2. Analysis phase
  3. Execution phase
  4. Review phase


Before we get into these 4 phases we are going to get you up to speed on the trading tools you need in order to be able to actually sit at your trading desk and plan your trades.


Trading Tools

As a trader, there are certain tools that you will need to stay in the flow of market-moving information. Fundamental and sentiment information is what drives price movement and volatility. In the following Wiki, we will take a look at the Trading Tools that will help you interpret this market-moving information so that you make good trading decisions for better profitability. These resources include:


You can access the main Wiki on Trading Tools HERE.


Trading Routine

In the following Wiki on Trading Routine we are going to break down a daily trading routine into 4 phases. Each of these phases incorporates the tools and the flow that we have covered in the Trading Tools Wiki.

The 4 phases that every trader should go through are:

  1. Knowledge phase
  2. Analysis phase
  3. Execution phase
  4. Review phase


After this, we will take a look at what a typical daily routine looks like.

You can access the main Wiki on Trading Routine HERE.


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This page was last edited on 17 October 2023, at 16:47.
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