Forex Trading Plan: A DEFINITIVE Overview In 2022! | ForexProp

Forex Trading Plan: A DEFINITIVE Overview In 2022! | ForexProp

Let's start with a famous saying from Dwight D, "Plans are nothing; planning is everything." 

To survive in a giant market like Forex, making big plans is much more essential than you can imagine. Because big platforms have people with bigger brains, this makes the market competitive & hard to survive.

The estimated value is around $2.4 quadrillion in the forex market size. So, if you can acquire the trick and techniques to forge a solid Forex trading plan, you can make a huge profit from your invested money in the Forex Market.

And, at the same time, need to follow some effective time frames.


In the forex market, a very common myth is that “retailers need a huge amount of investment to start trading,” but truly speaking, only a $100 investment is enough to begin. In this blog, I will cover the techniques of starting trading with minimum capital with other topics.


The term "forex" is a combination of the words "foreign currency" and "exchange." Foreign exchange converts one currency into another for various reasons, most commonly for trade, tourism, or commerce.

The daily trading volume for FX hit $6.6 trillion in April 2019, according to a 2019 triennial report from the Bank for International Settlements (a global bank for national central banks).

In trade, there is an ancient proverb that you plan to fail if you don't plan; therefore, having a Forex trading plan will serve you like silicon valley in the online trading industry.

It may come across as casual, but those serious about succeeding, especially traders, should treat those words as if they were written in stone. Any trader who consistently makes money will tell you that you have two options: Following a documented strategy carefully or failing.

Key Ideas

  • To be successful in trading, you must have an effective trading plan.

  • A trading plan should be written in stone but reevaluated and altered as market conditions change.

  • A good trading strategy takes into account the trader's personality and objectives.

  • Weekly time frames are more effective than shorter-term systems to trade in the foreign exchange market.

  • Weekly systems always help to locate the direction of forex securities, and successful traders do not need to react to sudden changes.

  • Weekly trading strategies help to manage time by saving as traders don't have to guard the chart all day long.

  • In weekly forex trading, small and slow trades achieve more success.


Trading plan


Developing A Forex Trading Plan

Making money and losing money can be differentiated by developing the best trading plan. Trading plans are designed based on market analysis and personal risk management perspectives. 

Only developing a trading plan cannot make one trade profitable; Successful traders have to follow the plan to make it worthwhile.

A disciplined approach makes the trader profitable for many years. Trading plans can make professional traders winners with some losses.

  • Many psychological concerns can be avoided with the use of a trading plan.
  • The number of bad deals will be reduced if a trading plan is strictly followed.
  • In the heat of the moment, a trading plan might help traders to avoid impulsive behaviour.
  • A perfect trading strategy allows many traders to manage the only thing they have control over themselves.
  • Trading will be more disciplined if other traders have a trading plan. Both discipline and a trading strategy are lacking in gamblers.
  • Traders can trade outside their comfort zone if they have a plan. How often have they let a loss continue instead of cutting a profit because it was more convenient? This can be avoided with the implementation of a well-thought-out plan.
  • A strategy is traders' GPS for getting from where they are now to where they want to be: constant profitability.
  • The trading plan is set up so that if traders make a "wrong turn," they will be alerted quickly and have time to remedy the situation before losses spiral out of control.

The market scenario is constantly changing. It is dynamic and ever-changing. As circumstances change, so must the trading strategy. Examine the trading system and procedures regularly, especially when financial or personal circumstances change.

Also, if research leads to changes in your trading system or approaches, ensure the foreign exchange trading plan reflects those changes.


Trading Plan - HOW TO TRADE FOREX WITH $100

Trading Plan - HOW TO TRADE FOREX WITH $100- Forex Trading Plan: A DEFINITIVE Overview In 2022!- Forexprop

In general, people think $100 is not enough, but in the forex market, anybody can start position trading with $100 and raise a new source of income.

By designing strategies and implementing them while trading goals, two traders can change their life with this $100 investment in this market and have a better life.

On the contrary, a plan to just enter the market and make the same practice gamble, 100 dollar loss will not break the whole savings.

Whether trading with $100 or $1,000,000 in the margin account, the key to success as a forex trader has a successful trading plan that retailers can easily keep.

There are some easy steps to trade with $100 are:

  • Step 1:Market Research 

Market research increases the possibility of succeeding in online trading opportunities. Forex market knowledge helps to hold the top position in the world's financial markets.

To attain consistent growth for the long term, every trader needs to know a certain amount of details about foreign currencies and the initial factors that affect the currency valuation.

Traders should learn very first how to analyze and the way they can predict the market's future.

There are fundamental and technical analyses to research the market that forex traders follow. Fundamental Analysis analyzes economic releases and news in the market.

In the trading market, individual currency quoted value reflects a nation's economy and the geopolitical situation.

Online forex retailers provide news feeds and economic calendars to their traders to list future releases and perform according to the analysis.

Technical Analysis uses charts and technical indicators to determine supply and demand influencing the exchange rate's future movement.

The charts show patterns that help to predict the value.

The Moving Average Convergence Divergence indicator (MACD), the Relative Strength Index (RSI), and the 200-day moving average are all technical indicators used in technical analysis.

Most scalpers and day retailers use technical analysis to keep updated on their trading activities. 

  • Step 2: Create Demo Account

The demo account reflects forex market and trading plan conditions without any market deposit. Retailers can get a vibe of the real forex market by opening a demo account, which helps them learn how to trade in the real market. It also boosts retailers ' courage to take more risks and deal in a disciplined way.

  • Step 3: Invest In The Account And Start Trading

After trading in a practice account, retailers start their real-time trading in the trading market. Trading in real and demo accounts has the same features with an emotional wave that comes from winning and losing even if retailers only invested 100dollar.

  • Step 4. Review Your Budget

Starting with $100 is a simple way to allow funded and start the trading activity, But retailers should remain consent with the same budget until they feel confident with their investment. After having constant profit, they can reinvest their profit, cash out, or save.

The reinvested amount should don't a thousand times larger it should be $125 to $150. Reinvesting using a Forex trading plan and a large amount is not profitable; it increases sudden risk and mental pressure.


A Plan to Start Trading with a $100 Deposit

Choosing the best broker is important to start with a $100 account deposit. But the broker's preferability depends on what he/she needs for trading experience. As for both beginners and experts, AssetsFX came out as the ultimate choice.

Their 0.0 spread facility helps traders make winning and exit trades under fast execution facility. Also, there will be some exciting promotions as well.

Good Sides Of Starting With A $100 Account

Anyone can start trading in the forex market, which gives a good opportunity for interested people. A simple $100 trading account, as it has been for a rising number of people, might be the start of a new stream of home-based income for you.

And from the other hand, if you eventually locate that trading forex is not for you, then $100 does not seem like much to lose to learn that lesson.


Using a Weekly Forex Trading Plan

Weekly Trading Plan- Forex Trading Plan: A DEFINITIVE Overview In 2022!- Forexprop

Most retailers begin their journey using intraday charts, which show changes in currency prices every 5 to 15 minutes. Some novice traders prefer daily charts to track market changes.

Traders who begin with these strategies are more likely to continue trading goals. And it appears that such trends can be found in weekly charts.

FX trading is essentially a trend-following strategy. Weekly trading also yields higher outcomes.

Weekly trading strategies assist in maintaining a position at the top of the momentum. Traders follow some techniques to use the weekly forex trading system on their trading day, which is:

  • Momentum Trading

The forex chart shows how currency pairs move in general. The currency version of Newton's Law of Motion is that there is always a trend of larger rises and falls. Every item must remain in motion until they are confronted with external action.

  • Less Time Commitment

The strategy offers weekly charts with less labour-intensive edges than intraday or daily charts. Traders can spend time on other work rather than sitting in front of the computer.

  • Trend Indicators

In weekly trading, traders follow four technical indicators to help pin down trends and trading diary options market.

  • Moving Averages (MA)

Moving averages (MA) is one of the easy trend indicators.  It helps to plot a currency pair's selected time frame average price.

Moving averages are calculated by adding the prices and by dividing by the number of prices.

Weighted moving averages deliver more importance in recent prices than the previous ones.

Generally, traders choose short-time moving average movement over the larger one and sell the trades below MA over the shorter time frames.


  • Stochastics

Stochastics is different from the moving averages indicator. It prospects the pace and momentum of the currency pairs' price changes.

When the speed is doing up, currency enters in underlying strength.

This strength will continue to rise until something forces it to stop the speed.

In the meantime, when the momentum is decreasing, it could be a good time to make a sell order. The same method follows when the price of a currency pair is falling.


  • Relative Strength Index

The relative strength index points out the overbought currency pair. It organizes the strength on a 0 to 100 scale.

The point between 0 to 30 represents the oversold, and from 70 to 100, it is overbought. When a trade crosses the centerline of 50 from above, it signals to sell. On the contrary, it shows buy signals when it crosses from below.

  • Bollinger Bands

Bollinger bands are named after the creator John Bollinger. It is the same as Moving Averages, but the process is more complex than MA.

The moving average prices are above and below standard deviation to calculate its needs. It shows the result in three different lines.

The price movement above the upper band represents a sell signal and below the lower band shows a buy signal.

  • Trading With Multiple-Indicator Charts

Normally momentum indicators cannot show all the same directed trends on the weekly chart. Traders have to hold back until they become better in aggregate.

Trading in a mini lot (10,000 units) can provide greater changes in price on a weekly scale than a micro lot (1,000 units) over a short time span. 

Traders use a stop-loss order to limit the risk of their invested money on trades. Also, put profit targets for economical trades to fix exit points.


20 Pips A Day Forex Trading Plan

In the forex market, currency pairs move 100 or more pips in a day. In this strategy, traders focus on a smaller part of that daily move. The 20 pips a day forex trading strategy is basically making a 20 pips profit than a more than 100 pips profit. 

The main concept behind the 20-pip-per-day forex trading technique

Traders trade the breakout of the previous day's candlestick's low or high in order to do so. So they sell when the price breaks the previous day's candlestick's low. They take a buy trade if the price breaks the high. as their main focus is to make a profit of 20 pips.

20 pips a day forex trading strategy corresponds to 10 pips a day and 50 pips a day forex trading strategies.

Any pair of currencies can be traded by following the 20 Pips A Day Trading Strategy. Professionals suggest using this strategy on a daily timeframe and to avoid the Asian forex trading session. For trading traders do not need to follow any forex trading indicators.

20 Pips A Day Trading Strategy is ideal for those who do not have unlimited trading volume and want to speed price movement up or down.


A Buy Trade Setup sample

Here is a daily chart of the USD/CAD currency pair.


To set up the 20 pips a day forex trading strategy, at the very first traders have to place two inverse pending orders. buy and sell stop pending orders at 1-2 pips above the high and below the low of the daily candlestick.

After that traders have to place a stop-loss order and take-profit order at 20 pips

Sell Trade Setup for 20 pips a day trading strategy is the same as a buy trade setup. Here is a chart of a sell trade setup.


Traders should notice the high and low value of the candlestick. if in a buy set-up candlestick value is broken at the high or low level, traders should not trade. And for the sell trade set-up, if the low value of the daily candlestick is broken the sell stop order will be activated.

In the buy trade set-up, when a single pending order gets activated, traders should cancel the other order immediately. If the high daily candlestick is broken, the traders should cancel the sell pending order.  

The positive side of applying 20 pips a day forex trading strategy is that traders can trade one single pair of currency by directing to earn 20 pips profit. 

On the other hand, traders have to win equal time to recover their losses. As it has a 1:1 risk-reward ratio.


7 Steps to Building a Perfect Master Trading Plan

FX Trading plans differ from trader to trader. Every trader has a different level of how much risk tolerance and every strategy is made with some essential components. Here are the 7 simple but most effective steps to build a winning trading strategy:

  • Skill evaluation

At the very beginning, every trader should test their skill in the paper trading success or demo account, and after getting the confidence, they should start in a live trading platform. Traders should not start their journey with hesitation. Hesitations can lead to plan lacking and many more mistakes.

  • Psychological Preparation

Traders should have strong mental preparation to handle maximum risk, win and lose in the market. All these are normal activities of the forex market; if traders get angry and distracted from their solid trading plan, they have to pay its cost.

  • Find out the Risk Level

Depending on their trading style and risk tolerance, individual traders have their own risk levels. The range should be between 1% and 5% of traders' portfolios, which helps to take a break and stay out of the market when the trader loses investment at any point in a day.

  • Set Goals

Traders should make realistic targets for for-profit and risk-reward ratios before entering a live trading platform. They should make weekly, monthly, and annual profit goals in percentage or in dollars of their portfolio and re-evaluate the targets regularly.

  • Trade Preparation

Apart from the swing trading program and system traders used, they should identify major and minor resistance and support levels on the trading discipline.  They should also monitor signals for entry and exit to make them easily detectable to have a clear overview at a glance.

  • Prepare Exit Rules

In trading, both buy signals, and exit signals are important. They cannot manage their loss if they don't concentrate on finding an exit point. Most professional traders know how to accept loose, as they know how they can manage their investment by limiting the losses.

  • Keep Excellent Records

Experienced traders always record their performance, which helps them re-correct their mistakes in the same situations. The details also provide a clear view of how and why they win and losing trades. It also helps in profit analysis and improves traders' trading discipline.


Traders cannot guarantee success by having successful trading practices, but they can gather confidence in the system they use for trading jargon.

For traders acquiring enough skill to trade without having any doubt about their decision is more important than deciding on a system. 

The whole forex trading journey depends on the trader's skill and system of winning and losing.

A trader may lose some battles by leaving profits and cutting losses short, but they might win this battle.

Most traders and investors do the exact opposite, which is why they do not regularly profit.

While there is no assurance that a trader will profit, having a strategy is essential if they want to be consistently successful and thrive in the trading capital.  

Frequently Asked Question

Frequently Asked Questions- Forex Trading Plan: A DEFINITIVE Overview In 2022!- Forexprop

Q.1 What Is A Plan In Forex?

A trading plan is a detailed principle that guides your judgment in just about any speculative trading. A trading plan is equivalent to a business strategy in forex and CFD trading. As the old adage goes, "if you wouldn't plan, you plan to fail.

Q.2 Can You Get Rich Forex Trading?

If you are a hedge fund with deep enough pockets or an exceptionally skilled currency trader, forex trading could make you wealthy. However, rather than being an easy way to get rich for the average wholesale trader, forex trading can become a hard journey to significant losses and prospective penury.


Q.3 What Does A Trading Plan Consist Of?

An essential trading plan involves regulations for entering and exiting, risk management, and position sizing. The trader may add additional methods to regulate whether and how they trade at their judgment.


Q.4 When Should You Exit A Trade?

Exiting after a failed breakout or breakdown, taking the profit or loss, and re-entering if the price exceeds the high of the breakout or low of the breakdown is the safest strategy.

Q.5 Is Forex Trading Gambling?

Many people regard forex trading as little more than gambling. After all, by taking a long or short position in a currency pair, you are basically gambling on the price going up or down.

Q.6 Can I Trade Forex For $10?

You could indeed initiate forex trading with as little as $10. For many offshore brokers, the minimum deposit amount for a live trading account is $10. Even though it is possible, starting with less than $1000 will be incredibly difficult but also result in much more difficult trading conditions, so it is not recommended.

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