Writing a Energies Trading Plan

In energies there is no single method or formula that is used for trading the energies market successfully. The energies market requires traders to learn and acquire the skill required to trade the energies market successfully. Energies traders need to learn how to analyze the energies market movements. Energies traders then need to come up with a plan of how to come up with a way of combining this knowledge and the strategies they have learned so as to formulate their overall trading method.

By coming up with an effective trading plan your success will improve significantly. A energies plan will help you to effectively analyze the energies market and know when the best time to open a trade is and when it is best to close the trade.

Before starting to trade the energies you must be prepared with a energies plan. Just like in business where all successful businesses start with a business plan also successful energies traders must start with a energies plan.

Sections of a Energies Trading Plan

Energies Trading Instrument

The first section of a energies plan will specify the energies instruments that a trader will be trading. Energies traders should specify the energies instruments that are best suited for their trading method.

Before deciding the most suitable energies instrument to trade a trader will have taken time to test their energies strategy on various energies instruments on a practice after which they will choose the energies instrument that produces most profitable results. The trader will then list this energies instrument on the trading plan as the energies instrument that they trade.

Energies Trading Chart Time-frame

The trader will also have to specify the chart timeframe they will be using to trade energies with. For example a trader may find that the best chart timeframe for their energies system is the 15 minute chart timeframe and therefore they will specify their chart timeframe as the 15 minutes chart time frame.

The chart timeframe that a trader chooses will depend on the type of trader they are. For day traders who have a lot of time to watch the charts they can choose the 5 minutes or 15 minutes chart timeframe and trade with these charts. For swing traders who do not have a lot of time to watch the energies market they can trade with the 1 hour energies chart timeframe so that they can be able to follow the medium term trends that will last for a one or two days.

Energies Trading scalpers on the other hand can trade with the 1 minute chart timeframe and trade the short term market moves. These traders will make many trades during the day and just like day traders they will also have a lot of time during the day to watch energies market moves.

Energies Trading System

This section will specify the energies system that the trader will be using to trade the energies market. This section will list the rules that a trader will follow when opening a buy or sell energies trade. It will also list the rule that a trader will follow when closing their trades - for example it will note the take profit levels as well as stop loss levels that a trader will set after they have opened a trade.

Trader will write-down if they will be using an technical indicator based energies system to generate energies signals or the trader will write if they will be using support and resistance levels to open and close trades or any other method that the trader will be using for trading. For example a trader may specify that they will be using automated energies systems and they will write the parameters of the automated energies robots on this section.

Before writing the energies system that a trader will be using, the trader will have back tested this energies system on a practice account until the time that the energies system is producing profitable trades on a consistent basis and after coming up with a profitable energies system the trader will then write down the energies system on this section of their trading plan.

Mindset

This section will specify the mindset that you will be following when trading so as to ensure that you become successful when trading.

Discipline - This will list that you will be disciplined enough to follow the rules of your energies system and trading plan. Discipline will mean that you will be patient enough to wait for a trading signal from your energies system before opening a trade. This section will specify that you will only trade the signals that are generated by your energies system and you will not second guess your energies system and open trades not indicated by your trading system.

Trade Without Emotions - when it comes to trading the energies market you should not let the emotions of fear and greed control you when you're trading. You should always trade based on the rule of your trading plan. Avoid becoming greedy and wanting more profit from the same trade instead of closing the trade at your take profit level.

Energy Trading Money Management

A trader must specify their energies money management guidelines that they will use when trading. For example a trader can specify that they will use a high risk: reward ratio which means they will place their take profit level at two times what they set their stop loss level. This will make their energies strategy more profitable in the long run because they stand to make more money from their winning trades and lose less money from their losing trades.