How to Write a XAUUSD Business Trading Plan Example
The trading plan is the systematic approach to trading which controls all aspects of the trading.
If you trade gold, you need a trading plan template if you want to become a consistent winner and to be able to make decisions fast and accurately.
Each trading plan template will have its own gold rules that have been set sets describing entry and exit trading signals. The trading rules set for each system are converted into simple to follow instructions or a trading checklist template that the trader can easily follow.
This gold trading checklist template will direct the whole process of trading - controlling the timing of the trade entries & exits ( gold trading system), the value of the opened trades in relation to the trading account equity balance ( gold money management system) and the emotional state of the trader (emotion management system). The resultant trade details should be recorded in the trading journal gold log and later studied for the ideas on how to improve each of the trading systems.
Trading is oftenly compared to a business. If gold trading is business then the trading plan is your business plan which should be prepared before you start trading with the real money. Better you prepare this gold plan - gold trading checklist template, the more success you can expect to achieve in real xauusd trading.
XAUUSD Plan Template
To write a good gold plan, you will need a good gold plan template that as a trader you can use to create your own gold plan. But before you download the trading plan, here is an explanation of the various gold plan gold trading checklist sections that your plan requires to have.
JUSTIFICATION
This part of your plan will write why you require a trading plan, one of the reason is that gold trading is a business.
Gold TRADING SYSTEM
This is the trading plan part where you include your system. In this section you will write the indicators to trade with, then you'll write the trading system rules that you will generate the signals with.
For more tutorials about trading systems
How to design Trading Strategies
TIMEFRAME
This is where you specify which is the main chart timeframe that you'll be trading with.
TRADE ROUTINE
This is the part as a trader that you have to specify the time when you will be trading the market & when you generate signals and how these signals should be generated. For examples:
- Signals are generated using 1 Hour chart time frame.
- Signals to be executed immediately rules are met.
- Entry signals should be executed during daytime.
TIME OF DAY TO WATCH MARKET
Watch market during daytime & trade only during the best hours
MONEY MANAGEMENT
This is the part where as a trader you will specify the money management guidelines that you will follow, for examples:
- Day trading -Low risk High return method
- Trade when I have a high risk:reward ratio 3:1 or more
- Stop loss = Parabolic SAR
- Set TP target 100 Gold Pips
- Never trade beyond 3 % of account balance
- Never risk more than 2% on a single trade
To learn more about gold money management
MINDSET/PSYCHOLOGYMINDSET--and--PSYCHOLOGYMINDSET--&--PSYCHOLOGY
This is the part you specify about your psychology rules
- Trade without Emotions (greed, fear, anticipation, impulse, bias, overexcitement)
- I trade what I see not what I feel.
- I--willI'll be patient.
My job isn't to be the trading system!
It's not to decide which trades looks promising.
Gold Psychology Rules and Tutorials:
WEAKNESS
By writing down your weaknesses you will start recognizing them as you trade, once you do this you'll begin to avoid this mistakes & your trading will improve.
For Example
- I am greedy.
- I overtrade
- Make a list of all your weaknesses that are interfering with your trading. This is the first step to help you to overcome the weaknesses. Use psychology to help you overcome them.
GOALS
Write the goals you want to achieve with your trading plan
·To focus on exit just as much as I do on entry.
·Always protect my account using stop loss, gold money management techniques, trading with the market trend & always following the rules of my trading system & plan.
·Never second guess or go against my xauusd trading system.
FOLLOW THIS SYSTEM
This is the most important part of making the system.
·Always follow the rules
·Stick with the rules
·Be disciplined and patient enough
JOURNAL
Log all my trades in a journal so as to track my progress. Write your Trades on a journal to track progress of your trading.
