This is why having a trading plan is so important

Podcast: This is why having a trading plan is so important In this video: 00:35 – Client makes +6.82% return in 2 weeks by sticking to his trading plan 01:20 – Trade specifically the way that suits you 02:02 – Create rules around your trading 02:45 – Trade results show consistency and profit 04:00 – 12 trades taken and 11 were winners 05:15 – Get on my free weekly webinars Have you ever wondered if a trading plan really does work? Well, I'm here to tell you it does, and I've got proof right here. Let's talk about that and more right now. Andrew Mitchem: Hi Forex traders, this is Andrew Mitchem here, The Forex Trading Coach, Today is Friday the 5th of February. I want to talk about trading plans and trading goals again, because a couple weeks ago I covered that at the beginning of the New Year, and I expressed how important I believe it is to have a trading goal and a trading plan. Client makes +6.82% return in 2 weeks by sticking to his trading plan Now, it just so happens that this morning I opened my emails and I've had an email from Paul who's been a client for just over two weeks. He said to me a number of things and it just backs up why having that plan is so important. By the way, before we get into it, Paul has made, on two accounts 6.82% in the first couple weeks since he's been with me, so we'll talk about those specific trades shortly. Just to read and quote some of the information that Paul said. He said, "Look, I'm taking it really slowly, only putting on trades that I have a high level of confidence in. I can tell you right now that I'm a one-hour chart trader. I use the lot size calculator, and I'm extremely strict with money management." That's the first outline. No specific plan here, but just the outline. Trade specifically the way that suits you He then goes on to say and explain about he's only taking trades initially on one-hour chart trades. He's leaving the trade on for an hour, seeing how they're going, and then after one hour he's then making a decision about moving stop-losses if the trade's moved up into profit. He's telling me exactly about what he's also looking potentially to add to a position if the trade's already in good profit, of what factors need to be in place to justify adding to a position, or just moving the stop-loss up, protecting the trade, and riding it to the full profit target. He also mentioned that over time he's looking at, and this is probably in about three months time, going to add weekly charts, daily charts, and four-hour charts to the existing time-frames, which is just the one-hour chart trades. Create rules around your trading He also mentioned here some rules that he's sticking to, and as an example, "I'm never gonna trade anything lower than a one-hour chart," so that's one-hour chart and above are the time frames that suit Paul. "I'm never gonna risk more than 1% of my total capital on a single trade or on a correlating trade," and "Under no circumstances will I enter a trade based on hype, gut feeling, or news." Now, there's some other rules that he's got listed here which are more specific to my course on trading strategy so I won't actually mention those right now in the video. Just to really let you know to outline really what Paul's done as he's got specific rules and he's sticking to them. Trade results show consistency and profit Now, what he's got down here he essentially mentioned in terms of Pips, not so much the return from the trade, but just to read out from one account here. He's taken a sell trade, Canadian – Yen, 82 Pips, another buy trade Euro – Aussie 26 Pips. Another trade here 32 Pips, 12, 8, and another sell trade Australian dollar – Japanese Yen, currently running 114 Pips.