A well-structured forex trading plan example is essential for consistent, disciplined, and profitable currency trading. It helps traders define their strategy, manage risk, and avoid emotional decision-making. Without a plan, traders are more likely to overtrade, chase losses, or abandon sound strategies during volatile conditions.

This article provides a complete breakdown of what a forex trading plan should include, with a practical example that you can customise for your own trading journey.

Key Takeaways

• A forex trading plan outlines your strategy, goals, rules, and risk parameters.
• It ensures discipline and reduces emotional trading decisions.
• Every plan should include market analysis, entry/exit rules, risk management, and review procedures.
• A demo-tested plan improves confidence and consistency.
• Professional training helps traders build and refine a trading plan effectively.

Why You Need a Forex Trading Plan

Trading forex without a plan is like sailing without a compass. A trading plan:

• Clarifies your trading edge
• Limits losses through strict risk controls
• Prevents overtrading and revenge trading
• Provides structure during market uncertainty
• Helps track progress and refine strategies

Essential Components of a Forex Trading Plan

1. Trading Goals

• Short-term goal: Achieve 4% monthly growth over the next 3 months
• Long-term goal: Grow account by 50% in 12 months with strict risk control
• Risk tolerance: Will not risk more than 1% per trade

2. Market Selection

• Focus on major pairs: EUR/USD, GBP/USD, USD/JPY
• Avoid trading during low-liquidity hours
• No trading during high-impact news releases unless preplanned

3. Trading Strategy

• Strategy: Trend-following using Ichimoku Cloud and RSI confirmation
• Timeframes: Primary – 1-hour; Confirmation – 4-hour and daily
• Entry Signal:
  • Price above Kumo cloud
  • Tenkan-sen above Kijun-sen
  • RSI above 50 but below 70
• Exit Rules:
  • Take profit at next resistance or 1.5:1 reward-to-risk
  • Stop loss placed below recent swing low

4. Risk Management Rules

• Risk per trade: 1% of account balance
• Max open trades: 3 at any time
• Daily loss limit: 3% maximum — then stop trading
• Always use stop loss and take profit

5. Trading Routine

• Analyse markets between 6:30 AM – 7:30 AM (London time)
• Place trades by 8:00 AM or wait for NY session confirmation
• Journal all trades at end of day using a template

6. Trade Review Process

• Weekly review every Sunday:
  • Log win/loss ratio
  • Evaluate emotional discipline
  • Identify any plan deviations
• Adjust strategy only after a minimum of 20 trades

Forex Trading Plan Example Template

Here’s a simplified version of a real trading plan for reference:

Section	Details
Account Type	Standard live account, £1,000 deposit
Pairs Traded	EUR/USD, GBP/USD, USD/CHF
Strategy	Trend-following with Ichimoku + RSI
Risk Per Trade	1% of account balance
Risk-Reward	Minimum 1.5:1
Entry Criteria	Price above Kumo, Tenkan/Kijun bullish cross, RSI > 50
Exit Strategy	Next resistance level or R:R target hit
Review Schedule	Weekly on Sundays, monthly strategy meeting every 4 weeks
Platform Used	MetaTrader 4
Broker	FCA-regulated broker only

Case Study: Writing Your First Trading Plan in a Course

In the Strategy Development Module of the Forex Course, students are required to write their own trading plan before going live. Under expert guidance, they:

• Define goals and capital allocation
• Choose one or two technical setups to master
• Backtest strategies using historical charts
• Apply position sizing calculations
• Submit their plan for review and feedback

This hands-on training ensures students trade with clarity and structure, significantly reducing beginner mistakes and psychological errors.

Frequently Asked Questions

What is a forex trading plan?

A forex trading plan is a personalised document that outlines your strategy, rules, risk management, and trading routine.

How do I create a forex trading plan?

Start by setting goals, choosing a strategy, defining risk per trade, writing down your entry/exit rules, and sticking to a review schedule.

Should beginners use a trading plan?

Yes, it’s essential. A plan helps beginners avoid emotional decisions and stay disciplined while learning.

How many trades should I test a plan with?

At least 20–30 trades in demo or backtesting before going live to ensure consistency and edge.

Can I change my trading plan?

Yes, but only after systematic review — don’t adjust it impulsively based on a few wins or losses.

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