CFD Corporate Building Your Wealth
CREATING A TRADING PLAN
Success as a trader is determined by many factors, some more critical than others. One person’s success or failure in life and business itself are factors of having planned correctly or sometimes a result of not having planned when you should have. As the owl says in Alice in Wonderland, “If you don’t know where you’re going, any path will get you there.” In trading, as in life, failing to plan is an absolute plan to fail.
A trading plan is your defined path, your map that will show you the road to your destiny, which is whatever you decide your ‘destiny’ is. In the world of trading, you want every edge you can get in order to be a ‘winning’ trader. If you are already a successful trader, then you understand the value of a trading plan. If you are just starting your ‘trading’ path, then you should follow the path of successful traders and every one of them has a trading plan.
However, creating a trading plan without having traded or having some level of understanding of the financial markets is difficult at best. How do you know what works, what doesn’t? Even if you took a year to study everything, if you haven’t actually traded with real money, you will never get the real experience necessary to build a winning trading plan. Just because you’re a professional athlete doesn’t mean you’re on a winning team. You can practice all you want, it doesn’t replicate game time plays and emotions.
Winning a championship isn’t about skill, it’s about the individual or team’s ability to ‘champion’ emotions during game time situations. Joe Montana, Michael Jordan, Pele were all about ‘clutch’ – when the time came to prove themselves, they all showed their true champion nature, with game winning TD’s, points or goals!
Trading is the same. You will ultimately need to champion your emotions, your fear of losing money, so that when you do execute a winning trade, you fear of loss doesn’t prompt you to pull out too early or your greed doesn’t keep you in too long. At some point, you will need to develop an inner confidence, in yourself, in your trading method or plan of action.
If you had never been in England before, and you wanted to drive from Heathrow Airport to London, you wouldn’t create your own map, you would use an existing map or GPS Satellite system until you were familiar and confident with the road systems to create your own way to get from A to B.
Trading is no different. However, in order to use someone else’s map or GPS Satellite system or in this instance, an existing trading plan, you also must trust that the person or the trading plan is one that will generate successful trades.
This is why we are always emphasizing the benefits of being an account holder with CFD Corporate.
We have the traders and brokers who have decades of successful trading experience in the market. They attribute their success to trading plans and the ability to control their emotions. These plans generate winning percentages on our trades because we are able to control our emotions and use our ‘visual acuity’ skills to see short-term market trends and direction.
We are not only excellent traders, we are also expert educators and trainers; expert fund managers. And as expert managers, we manage quite a bit of wealth; we also help manage thousands of portfolios for our retail investors.
PRACTICING WITH A DEMO ACCOUNT
Is not the answer! If you master trading with a demo account, you will make the mistake that over 90% of new traders make – lose their money within 90 days. Why? Because a demo account is like playing with monopoly money. All you are really learning is how to play the game or how to execute trades on a specific platform, not how to manage cash, or how to manage winning or losing trades, and most important, how to manage risk.
A demo account will give you an excellent understanding of how to execute trades on a trading platform, but in today’s FX/CFD world, our FX/CFD / Forex Trading Platform leads the industry in innovation. We have simplified what used to be a difficult and complex process.
We can show you how to use our platform in a matter of hours, not months. You don’t have to learn complex MT 4 or Meta Trader 5 platforms, or whatever else is out there to confuse you and make your trading more complex.
Your focus should be on when to execute a trade, not how. Your trading platform should be something simple that any adult can understand.
Demo accounts will never allow you to duplicate or replicate real trading; to understand the true emotion of winning or losing REAL money. And, you will never be successful if your emotions rule your trading. When you start trading on a FX/CFD platform, you have a trade that goes one way or the other. In other words, before you even start, you have a 50-50 chance of winning. So why do so many traders lose instead of win? Emotions – mostly fear and greed.
However, IF you want a demo account, go open an account with one of the thousands of brokers who offer a demo account. When you want to learn how to trade, and more importantly, how to profit, come open an account with the CFD Corporate Family.
EMOTIONS – How to control
“OK, how do I learn to control my emotions and trade in the zone and make a higher percentage of winning trades than losing trades?”
“Open a real account, with real money.” That is where you start. Maybe you don’t have a ton of capital you can put at risk. Maybe you have $100 or £250; maybe you only have €177 – it doesn’t matter.
This is not to say that if you open a real trading account with real money you will not lose. Every Trader loses. You have to be willing to invest in your trading experience. You want to be a professional, you must learn to lose and win.
And to control your emotions either way. Why? Because nobody wins 100% of the time. There are a few great traders in the world that win 80-90+% of the time, but most successful traders trade in the 60-80% winning trade range (winning 6-8 trades out of 10) and know how to manage the wins and losses and their risk exposure.
As soon as you start trading with real money, you will either win or lose and you will experience the full range of emotions, whether you are trading with $12, £120, or €1200! This is what you need to ‘practice’ with; you need to ‘demo’ your emotions.
With CFD Corporate, you can activate a trading account with our ‘ANY AMOUNT’ account or you can start with more capital. That is totally up to you. But until you experience REAL TRADING, you are only fooling yourself. For this reason, contrary to every other broker out there (as of this writing), we’re the only Broker with no demo account and our “open an account with ANY AMOUNT.”
Having an account with CFD Corporate means that you are on a winning team. You don’t need to know how to fly a plane to fly from Paris to New York. All you need is a real captain sitting in the Captain’s Chair with a reliable navigation system. Taking off and landing is left to Autopilot if you’ve ever flown. Same with trading – we know where the market is moving. Would you like to join in?
Here is a short list of the emotions that you need to control, otherwise they will absolutely impact your trading in a negative manner. Trading usually produces the following emotions. The successful traders know how to control their emotions so it does not impact their trading. When I first traded, one way I dealt with emotions was to execute the trade according to my trading plan, and then go for an hour walk while the market continued on. My trade either lost or won when it hit either my stop loss or my profit limit.
When you trade with a demo account, and you experience fear of loss, you are in trouble. Why? Because you the unbearable desire to close out your trade. The only true way to overcome fear of trading, is to NOT fear the trade.
For example, you must determine what you are willing to lose. Fear in trading, is fear of loss. Are you trading with money you cannot afford to lose? If so, you have a 90% + chance of losing. Are you willing to lose $100? If so, trade with $100 and live with the results win or lose.
This is the emotion that comes from executing winning trades, and then getting so excited you get greedy and then, you stay too long in the trade and it goes in the opposite direction. Then, instead of closing the trade to cut losses, you still remain greedy, thinking it will reverse and you’ll make back what you just lost from not closing the trade. It could still go either way, but greed needs to be controlled just like fear and anxiety.
Sometimes, you have ‘things’ in your life that will distract you from any activity, especially trading. Your best action when you have any issues which are ruling, controlling your thoughts, or clouding your judgment, is to take a break. Don’t trade. Family issues, health issues, whatever the issue or thing is, if it will distract your attention, as a rule, Do Not Trade.
Happy times or joyful feelings can impact your trading just as much as any other mood or emotional state. Optimism and happiness are great emotional states, but do not allow your good spirits to change the way you trade, maybe to take more risk because you have a ‘feeling’ or ‘instinct.’ Once you have a plan, stick to it. Joy and Happiness are great, just be aware of how your feelings and emotions, negative AND positive impact your behavior and trading.
If you are angry because you made a ‘bad’ trade, don’t get angry from it, learn from it. If you have anger or are experiencing angry thoughts, stay away from trading at that moment. Calm down before you trade. The anger must not be there or even under the surface. An angry trader is a losing trader.
Before you can even create a trading plan, you need to learn some basics on how to trade, otherwise, what is your plan based on? Therefore, some questions that you need to ask yourself, or that your Personal Broker should be asking you are:
Why are you trading?
Obviously to make money, but is this a part-time, recreational activity or are you planning to make a fortune and retire? Are you planning on doing this full time? Are you considering becoming a professional broker?
What experience do you currently have?
What level of education and training do you have in general and specifically to trading and the financial markets? Have you ever traded before?
How much time do you have to commit to this?
What are your risk levels? Are you a high or low risk type of individual?
How much capital are you going to fund your account with?
What are your profit expectations? Are they realistic given the amount of capital you have to invest?
These are key questions which not only need to be asked, but they need to be answered now; and they will need to be answered continually as you progress and increase your trading experience and expertise.
You should, at the very least, have a basic understanding of trading – the language, the rules, the charts, the trading platform. While many will attempt to convince you that you don’t need to know anything except how to press buttons, trading is much more complex than just starting a demo account. At CFD Corporate, we have simplified a complex process, but we are the exception, not the status quo. We gain from your profit. When you win, we win.
TRADING PLAN RULES
When you build a trading plan, you are basically setting down your set of trading rules; these are based on how much money you have to risk, how much time you have to dedicate to trading; what are your daily, weekly, monthly and annual profit targets (expectations).
Your trading plan is a plan for disciplined action. It is a set of rules that you need to adhere to in every situation and not deviate from in any situation. This is the reason you created it, so you know what to do in all trading situations.
To begin your trading plan, again, questions need to be answered by you. What type of trader are you? Short term? Swing trader? Which days will you trade, what hours of the day will you trade; which time frames will your charts reflect, what asset group(s) / underlying instruments are you inclined to trade and why? And most important for capital preservation, what are your risk and money management strategies for your account.
At this point, if you understand everything then you must have some education and training. If you do not, there is only one shortcut to a successful trading plan – that is having a successful, experienced broker or trader train and coach you, direct and guide you in the proper direction; to help you manage your account. Open Account Today!
STEPS TO CREATING A TRADING PLAN
Realize from the beginning that a trading plan is an evolving plan. It never stays the same. As your experience and trading skills evolve, so should your trading plan. As your success rate increases, as your skill level rises, your account accumulates more capital and your risk strategies or parameters may change or you may decide to increase your risk. If your trading plan is not producing the results you are expecting, then maybe you need to decrease your risk; something needs to change, to evolve.
One of the benefits of choosing CFD Corporate is the ability of our personal brokers to help you build a winning trading plan; the ability to see what you’re doing, to counsel you on market direction, trends, market indicators, technical and fundamental analysis and the difference.
The first and most important step for a CFD Corporate Personal Broker is to ‘Know Your Client.’ It is critical to their success as a broker that they know who you are, what your objectives are, not only in trading but in life itself. Finding out what is important to you, what you want to achieve, what your expectations are is their first step; assisting you to execute winning trades is their second focus.
It therefore is completely logical that your first step is to ‘know yourself’ – define who you are, from both a personal perspective and then from a trading perspective, which if you are just beginning, may be limited. Know ahead of time what answer to give your broker upon being asked those questions above. Although your trading success is partially determined by your ability to recognize successful trades, your trading success is more of a factor of your ability to remove the emotion of fear from your trading.
This is why creating a plan, and then, adhering to that plan is critical to your success. There are books about being a disciplined trader, about trading in the zone, about trading with the ‘Trader’s Mindset’ – this is what defines a successful trader – one who is disciplined enough to create an excellent trading plan and to then stick to it.
Determine what and why you are doing what you are doing, where you are going, and what you are going to do to get there – start answering the KEY questions we spoke about earlier. How much money do you realistically want to earn? $500 a month? You want to earn $1000 a month? Then opening an account with $250 says you are not serious. You want to earn $25-$50 a month? $100? Then $250 may work. To get used to the platform, you may elect to trade in the beginning with smaller trades like 100 or 250 of your account currency.
However, if you have real expectations of replacing income, becoming wealthy and then doing whatever you feel like doing, then you better have a real expectation of how much capital you will eventually need to deposit into your account to be realistic. We are talking about €3500-€7000; $5,000-$10,000 just to start.
Which financial markets are you inclined to trade in? Does the FOREX have your interest? Commodities? Or do you want to trade stocks? One thing is for sure, if you try to trade everything, you may never become an expert at trading anything. You need to pick one or two asset groups, like currencies or commodities. Why?
Because you want to learn everything you can regarding each asset class, such as currencies or FOREX. You can study currencies for years and still not know everything. This applies to stocks, commodities, and indices as well. Can you eventually trade each asset class? Absolutely.
CFD Corporate has completely changed the world of trading by opening up FX/CFD and Forex trading on their Technologically Advanced Web Based Platform. Start with one asset class. After a few months or years, you may change what or where you trade; especially how you trade. Yes, we do have excellent personal brokers, but our education and training, such as this paper on trading plans, is so that you can mature and grow as a trader, if you choose to.
Ok, you have identified your market – stocks, FOREX, whichever. How much time do you have to trade each day?
Why this question? Different markets, different international exchanges, and a host of other factors such as how much time do you have to trade determines when you trade. It can also determine what you trade. Currencies trade 24/7, and maybe night-time is your best time to dedicate to this craft, so maybe you trade FOREX. Maybe you only have 2-3 days a week when you can free up time.
These are questions best answered by yourself, BUT your personal broker* (dependent on account type) can be extremely important in helping you to determine which financial markets you may be suitable to and the best time to trade relevant to your time freedom and the market you’ll be trading in.
Create Wealth with your own Personal Broker
Maybe you do or don’t have time to trade. Maybe you do or don’t know how to trade – either way, you have the option* to allow our expert personal brokers and dealing room brokers assist you in managing and trading your capital. *See account types.
Contrary to most other brokers and firms, CFD Corporate retail dealing room trades with you, not against you! Custom tailored with you in mind, our retail dealing desk operation is staffed with top-tier, veteran market analysts, each with an extensive history of developing winning trading plans and developing the financial plans designed to turn those winnings into wealth for our investors. Open an Account Today!
Start a trading journal (or diary): start summarizing everything you see and do; start taking notes as you start trading.
You need to evaluate and assess your personal traits and characteristics, learn what behaviors may need to be changed. You have to document your entire trading and training experience and process so that if you are repeating a Behavior that is having unfavorable results, you can go back and see what exactly you are doing, what maybe you are not doing.
More importantly, if you are having favorable results, you can keep repeating those trading behaviors based on your observations, records and note taking. In the beginning, an excel spreadsheet can do the initial job. There are more sophisticated journals when you develop the need to keep more detailed records.
One of the first lessons of a creating a trading plan is risk management. Some people call it money management, but in the end, your key trading objectives are ALWAYS:
Here is another absolute – you will always have winning and losing trades. You want to lose less, win more. Sounds simple, but you would not believe how many people do not understand this.
You can lose ten $500 trades in a row if you have $5000 in your account. But you won’t lose the 11th because you just wiped out your account, risking 10% on each trade. Actually more because the second trade, you only had $4500 and you still traded $500 (11.1%) – hypothetically, of course. This is an illustration of how some people trade and lose their account right out of the gate.
One simple but highly effective example of risk management is trading only a certain percentage of your account in each trade. This way you know exactly what your risk and your upside profit potential will be in each trade.
In the risk management part of your trading plan, you may have already decided not to risk more than 4% or maybe only risk 2% on each trade. IF you had $5000 in your account and you lost 10 straight trades, with only 4% at risk each trade, you would have at least $3000 left to recover your losses (after your first loss, $5000/20%=$100, you would have $4800 left, and 4% of that is $96, etc.).
From the very beginning, (with assistance from your account manager or personal broker) you will work on creating and developing your risk management strategy portion of your trading plan which is again dependent on:
How much time you have to trade
How much capital you have on deposit
What your risk level is, and
What your profit expectations are
A trading plan will ultimately contain these components and more.
First, determine the financial instrument you wish to trade.
Identify the various market indicators you have decided to use – moving averages, RSI, volatility, etc. You will have to determine which conditions must exist for executing a specific trade.
Determine how much you are trading – mini-lots, standard lots, shares, options – defining your trade parameters according to your account size, risk management parameters.
You have to determine your entry point maybe based on support, resistance, trend reversal, retracements, etc. You will also have to determine the parameters for exiting or closing out a trade exits. On the FX/CFD Platform, for the most part, your exit is predetermined when you initiate the trade.
Constantly and continually evaluate and upgrade your trading plan.
SAMPLE TRADING PLAN
Here is an example of a trading plan from one of our successful investors who only trades currency, but is applicable to all markets and all security instruments.
Consistently predefine your risks before entering a trade. How many lots – how big a stop. Define what you are willing to lose on your first trade
Cut your losses without hesitation or reservation when the trade isn’t working.
Take profits according to an organized, systematic, money-management regimen.
Environment Conducive for Trading – before beginning to trade, attention must be given to where the trading will take place.
Chair – comfortable enough to sit for 8 hours.
Monitors – comfortable enough to view for 8 hours; minimum 2; if you’re blind like me, 4 is better.
Computers – functioning properly, backed up, battery UPS,
Trading Stations On – Charts are up, pairs are on time; prices are functioning properly
Trading Chat Rooms – (if desired) logged in and/or newscasts, alert services, etc.
Internet – Broad Band connection; redundancy. Last thing you want is to enter a trade and have your system go down while you were trying to put in a stop loss.
Quiet – NO Distractions! Cell phones on vibrate or off; refreshment available
DOS AND DON’TS
The Trend, The Trend, The Trend – This should be predominant at all times, for all trades.
Money-Management – don’t take the trade if the ratio for gain is not worth the risk of loss. Know before each trade what is at risk, exactly what is being traded – lots, stops, limits;
HIGH PROBABILITY TRADES
Trade with the trend;
Draw a Fibonacci and get in on the retracement! Draw Fibonacci’s with the trend.
Enter each trade with the best probabilities
Each trade is an opportunity for profit!
Don’t trade just because the market is open Be Patient! – Again, Don’t be in a hurry to trade; look for a high probability trade.Go over the trading checklist – get set up!
Be aware of: Each time chart; Chart patterns; Candle stick patterns
Strong and weak currencies – which currency are you trading? Pick one!
Forex Calendar & News alerts – Forex Peace Army has them pegged perfectly. Pay attention to those times and events. Trade alerts – make notes of the barriers on the charts; yesterday’s H/L, etc.
Trend Direction – Up / Down / Sideways; look on daily and weekly charts, compress 30 minute chart – to determine the bias, and where are we in the trend wave – beginning, middle, maybe close to retracement / consolidation / hiccup Barriers – Resistance And Support Levels – Previous Highs / Lows; Pivot Points; NR 4; ID; NR7;
Are there any Key Fibonacci Levels?
Has a daily candle closed over/under one of the levels? (38.2; 50, etc.)
Is there a close through the 5 EMA?
Are the 100 and / or 200 SMAs near price action?
RSI – is 50 acting as support? At extreme?
Are there any chart patterns / candle patterns we can identify?
Elliott Waves. Where are we (which wave) in the cycle.
1-2-3 Set-ups / A B C Elliott Waves
Determine if a Long-Term 1-2-3 Setup exists after Divergence (Fifth wave must have divergence)
Draw Supply / Demand lines to determine range / wedge for breakout.
Determine risk / reward of range – entry point, stop loss, profit limit – is there a 2:1 minimum?
30 MIN CHARTS
Trade Alerts / Trade Signals
Review from the day/night before
Time of Day / Trading Session – are we near lunch hour? End of NY Market? Beginning of London?
Today’s 30-minute Trend since London Open (Up / Down / Sideways?)
Where are we in the 13/62 trend – what is the direction?
Where is the RSI? Extreme? Is 50 acting as support or resistance?
Chart Patterns & Candle Patterns
Fibonacci Retracement Levels
Has a candle closed over a fib extension?
Are any FibX’s or midpoints acting as support or resistance?
If sideways, Draw Supply / Demand lines
What is our present support and resistance near price action (range of 20-25 pips for ‘inner’ support)?
Are the 156 EMA or 62 EMA factors as potential support or resistance?
Are any .xx00 levels acting as support?
RSI Peak Breaks
5/13 CWB’s at tops and bottoms – 2 candles closing up/down/outside
Divergence (if we are near top or bottom) following a strong move?
Specific 1-2-3 Pattern
Combine with Slow Stochastics and MACD
5 MIN CHART
Entry and Trigger Chart –
Use for confirmation, for triggers and entry points; do not trade off the 5 minute.
Choose entry based upon Range Bottoms / Tops – Exit the same
Transfer 30 MIN Barriers to 5 MIN Chart
Chart and Candle Patterns
Look for Buying and Selling Pattern
Review Recent Triggers
Build Wealth with your own Personal Broker
We are interested in you becoming a successful trader. We’re not interested in taking or reducing your capital, we are interested in helping you grow your capital into wealth. Our brokers and analysts have been doing this for decades and now we are moving into the retail market with the expectation of market domination.
If you do not yet possess the ability to trade successfully, trading with real money will give you a more realistic experience. Trading with CFD Corporate will give you an edge other brokerages and trading houses do not offer. For this, we’ve decided to allow you or anyone to open an account with any dollar amount. Are you fearful of the market? We take fear and convert it into confidence. Security, Integrity, and Service Excellence.
Maybe you do or don’t have time to trade. Maybe you do or don’t know how to trade – either way, you have the option* to allow our expert personal brokers and dealing room brokers assist you in managing and trading your capital. *See account types.
Contrary to most other brokers and firms, CFD Corporate retail dealing room trades with you, not against you! Custom tailored with you in mind, our retail dealing room operation is staffed with top-tier, veteran market analysts, each with an extensive history of developing winning trading plans and developing the financial plans designed to turn those winnings into wealth for our investors. Open an Account Today!
THE #1 Trading Platform – Mobile & Desktop
Come experience multiple asset trading on the most technically advanced trading platform. Trade all asset groups from ANYWHERE (even in the bathroom) with our Industry Leading Mobile Application. Forget downloads, with us you will be up and trading FOREX, Commodities, Indices, Stocks, and Futures in minutes or whenever you decide to participate. See Asset Index
Our Training Academy consists of an extensive collection of training tools and trading strategies to give you a winning edge in the market, including FREE video tutorials, on-demand webinars, e-Books, online courses and much more. If you are interested in learning to trade, our education and training will provide a thorough understanding of platform and trade execution; risk management and money management strategies; trade plan execution and more. Click Here to Open Account!
What sets us apart from the rest? Our top-tier analysts with exceptional market insight; Our history of success and our willingness to now open up our expertise to the retail investor. We are the industry benchmark for customer service superiority and operational excellence. Everything we do centers on You – your security, your profitability and exceeding your expectations. Register Here!