Perdagangan and investing may seem like a fascinating career option for outsiders. But only a trader can understand the hardships of this job. A trader has to consider various aspects before trading. A skilled trader knows the process and the plan to prosecute their decision. But how will a beginner trader decipher the forever-changing market of trading?

A well-designed trading plan can solve these questions and problems. Everyone should have a well-defined trading plan, be it a skilled or a new trader. This article will take you through the steps needed to make the best trading plan for beginners.

Introduction

A trading plan is a repertoire of steps needed to be accomplished to become a successful trader. It gives a constructive outline of the decision-making process in trading. Having a trading plan gives the trader a clear idea of how to proceed with their trading.

A trading plan tells you the basic trading methodology: what, where, and how. These are the three most important W’s of the trading community. A trading plan helps you formulate profitable decisions before trading in the market. It aids you in assessing the risks beforehand and mitigating them skillfully. Following are the reasons why trading plans are considered beneficial:

• Easier Trading: You can easily plan your trading journey before applying it in the market.
• Good decision-making: A trading plan limits the spontaneous decision-making process.
• Risk management and mitigation: It gives a rough idea of the losses and risks that might occur in the future. In that case, you can change your trading direction to cut losses and increase profits

You might be thinking, How can I formulate a new plan without prior knowledge in this field? Do not worry; I will give you the best trading plan for beginners, giving you a rough idea of how to proceed. Before exploring the plan, let us briefly look through important trading terms.

CFDs and Forex trading

CFDs and forex trading are the core of the trading industry. Let us look at them first.

 CFDs (Contract of Differences)

CFDs stand for contract for differences. It works purely on borrowed money and not on actual capital. The buyer has to pay the seller a certain amount, which is the difference between the asset’s current value and the asset’s value at the time of the contract. It is a quick and easy way to make huge sums of money, but it has a lot of underlying risks. Because of the heavy risk factor, CFDs are banned in many countries to provide a safe environment for regular traders. 

Perdagangan Forex

Forex trading simply means foreign exchange trading. It makes use of the exchange rate of currency to earn profit. The traders buy the currency of a certain country and sell it in another currency. This exchange rate difference affects their profits. If it’s in their favor, they can earn a huge amount of money. This form of trading does not have a centralized center or hub. Forex trading has a vast online presence; most of this betting and currency exchange is done directly online.

By understanding and considering these points, we have formulated the best trading plan for beginners. 

FXGiants: The Best Platform for Trading

FXGiants is considered one of the best online trading platforms because of its myriad services, like CFDs, Forex, etc. It is a flexible and reliable platform for trading, especially for newcomers. Some of the features of FXGiants are:

• MT4 Trading Platform
• Multiple trading accounts
• Diverse asset selection
• Regulation and security 

The Secret to Winning Trading Plans

After getting familiar with these trading terms, the time has come to the main part of the article: The Best Trading Plan for Beginners. This trading plan is simple, and you can always modify it according to your goals, profits, and risks.

1. Setting up Trading goals: the foremost and most crucial step is setting goals. It means to define your goal. What investment and trading do you want to do? Focusing on profits and cutting losses is a good strategy, but you should always be open to learning.

2. Selecting a trading style: Select the style that perfectly aligns with your goals. The approach to different goals will be completely different. You cannot apply the same approach to everything. You should have a versatile approach.

3. Choose the asset: Carefully choose the asset you want to use while trading. Both are equally good, whether CFD or forex trading, but again, you have to decide on a capital type according to your goals.

4. Risk Management: Risk management is an important part of the trading plan. This determines the amount of profit that you will attain. Its main goal is to mitigate risk and increase profits.

5. Trading Strategy: After deciding the type of asset you will use in trading, the next thing you need to decide is the trading strategy. Trading strategy includes a set of rules, mainly known as protocols, that you must follow while trading in the market. These rules are predefined to minimize risk and maximize profits.

6. Maintain a trading journal, which consists of all the trade entries and exits, all your assets, all your mistakes, and all your profits. It will help you generate a pattern and increase your decision-making skills.

7. Always eager to learn: Continuous learning is the key to becoming the best trader. As society is changing, so is the market. If you don’t keep up with trends, you’ll lose then and there only. 

Conclusion

Building a winning trading plan is a crucial step for beginners entering the world of financial markets. It provides structure, discipline, and a roadmap to success. Remember to set clear goals, choose your trading style, select the right assets, and manage risk effectively. FXGiants, with its MetaTrader 4 platform, is an excellent choice for beginners looking to venture into CFD and forex trading. With the right mindset, continuous learning, and practice, beginners can increase their chances of success in the trading world.

FAQs

Q1) What are the 7 steps to creating a trading plan?

A1) The 7 steps are:

1. Define trading goals.
2. Select your trading style.
3. Select asset
4. Risk Management
5. Trading strategy
6. Maintaining journal
7. Eagerness to learn

Q2) What is the golden rule of trading?

A2) The golden rule of trading is to wait for the correct opportunity after carefully analyzing the market.

Q3) What are CFDs and Forex?

A3) CFDs stand for contract for differences. It works purely on borrowed money and not on actual capital. The buyer has to pay the seller a certain amount, which is the difference between the asset’s current value and the asset’s value at the time of the contract.

Forex trading simply means foreign exchange trading. It makes use of the exchange rate of currency to earn profit. The traders buy the currency of a certain country and sell it in another currency. This exchange rate difference affects their profits.

DISCLAIMER: This information is not considered investment advice or an investment recommendation, but is instead a marketing communication