Weekly trading plan

Every successful FOREX trader has to have a trading plan. There are a lot of different strategies when it comes to timing. It is very important to coordinate your targets and stop-loss orders with the timeframe of your trading plan.

My experience tells me about an important cycle in trading, which is one week. I usually work on my trading plan for a week ahead, and main job during the trading is to check if the suggestions were right and execute the plan according to the price action. Of course it is tough to have an exact prediction about possible retracement depth and exact time of reversals. But this timing helps me to maximize the profits and balance them with potential risks.

Before starting to work on my weekly trading plan, I analyze the previous week and double check all of the levels, that I targeted on my previous plan. It is very important to keep the direction together with the trend, and not to position trading against the market. I usually choose one direction according to bigger timeframes like weekly and daily. And I try to avoid attempts to catch all of the market movements. So if the price action goes against my prediction, I just stay out and use wait-and-see tactics.

This approach requires patience. A trader has to be like a sniper, camouflaged in a bush position, waiting for his target. Once he sees his target clearly, and once he is confident about good chances for his bullet to reach the target with one shot, he pulls the trigger.

There has to be a plan B though. The sniper has to be ready for a possible miss and prepare for a second shot. But this is another topic to discuss in the scope of trading strategy without stop-loss orders.