My First Forex Trading Plan

Hi, my name is Nathan Tucci, and I will be interning with Casey this summer. I am blogging on his website as I learn to trade. Each week I will post the trades that I have made and show how they have been profitable or losses. I hope you will follow along to see if someone like me who has never traded before can become a profitable trader in a short time. Click this link to watch my interview with Casey. You can also follow me on Twitter where I will be posting some of my trades there as well.

  • Goal of my trading plan: Make enough money trading to pay my college tuition.
  • Strategies:
    • Use the candlestick charts to locate large bullish or bearish bars.
    • Use the 20 point simple moving average to indicate whether a pair is prone to go up or down.
    • Look for large bearish or bullish indicating bars to signal a good trade.
    • Use a strength meter chart to show what the strength or weakness of each currency is over all.
  • Example:
    • I want to go long on large bullish indicators if it is below the 20 point average.
  • Rules:
    • Only take positions on the major currencies.
    • Set a stop on EVERY trade.
    • Set stop to lose no more than 25 dollars per trade.
    • Will not lose more than fifty dollars in one day.

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  • Forex Alliance

    Good luck to you Nathan!! 🙂 One suggestion if you dont mind. Trade one pair only and master THAT pair.

  • Anonymous

    Hey Casey, thanks for the comment.

    1. I’ll be basing my trades on the hourly chart, while referencing other time frames for better ideas on the trade.
    2. My trades will be in mini lots.
    3. I’ll be setting my stops below the low or above the high of the previous candle.
    4. I’ll use the 20 point average to help determine where to take profit. If I’m long and the candle goes above the 20 point average, I’ll be looking to take my profit.
    5. I will be trading with the trend on my positions in most cases.

  • Nathan Tucci

    Hey, thanks for following along!

  • Nathan Tucci

    Hi, thank you for reading and responding! The reason for using the 20 point average is simply because I like an average that’s a little tighter on the trends because I am a short term trader. This is basically the same reason I am looking for bars rather than trends. I am trying to make a trade based on a bullish or bearish bars that will take a chart back up or back down to the average and then closing my position, rather than trying to stay in a trade for a long period of time and ride a trend. Thanks again for the feedback.

  • Pamateriales

    hi Nathan, don’t take me wrong, I just want you to answer this questions me and yourself, why sma20, why not 25 ot 100?, why locating large bullish n bearish bars, shuold’nt be better to locate bullish and bearish trends?, don’t you think that by finding a large bullish bar, you might get squeezed up because may be you got in in the midddle of a short time break out, what is a strenth meter?, is it like comparing, let’s say USD against AUS,EUR,JPY,NZD?, I’ll like to know?, which are the pairs you look to trade and why? what I mean is EUR/JPY is a mayor, but very volatile, is that why you might choose it, or CAD/JPY because you want to check out the oil quotation to get an idea of what the CAD is going to go? or AUS/USD because relies highly in constrution spending, gold and coper?. Don’t take me wrong, I would like to know this, it might help me in my trading and at the same time clarify why are you doing one thing or the other.

  • I have a couple of questions to see if I can clarify this strategy?

    1. What time frame chart will you be using?
    2. What is your trade size going to be?
    3. How will you determine where to put your stop losses?
    4. How will you determine where to take profit on your trades?
    5. Is this strategy a trend following strategy or counter trend?

    The reason I ask is because I think there could be some more clarification on some points. When developing a trading plan it is best to have as much detail as possible. You want to eliminate thinking so you can just follow your plan.