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Magnafxinstitute Trading Plan

This document provides a daily trading system and plan. It involves waking up early to review the news and manage any open trades. The trader will analyze up to 5 currency pairs and select 1-3 setups to trade based on their understanding and confidence. Price action will be closely monitored on multiple timeframes to identify reversal patterns at key support and resistance levels, including Fibonacci retracements and moving averages. Trades will only be taken if criteria are clearly met with confluence. Risk is limited to 30-50 pips and losses are accepted without hesitation. Consistency is emphasized through disciplined adherence to the predefined plan and managing emotions.

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Bwiane Tembo
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37 views6 pages

Magnafxinstitute Trading Plan

This document provides a daily trading system and plan. It involves waking up early to review the news and manage any open trades. The trader will analyze up to 5 currency pairs and select 1-3 setups to trade based on their understanding and confidence. Price action will be closely monitored on multiple timeframes to identify reversal patterns at key support and resistance levels, including Fibonacci retracements and moving averages. Trades will only be taken if criteria are clearly met with confluence. Risk is limited to 30-50 pips and losses are accepted without hesitation. Consistency is emphasized through disciplined adherence to the predefined plan and managing emotions.

Uploaded by

Bwiane Tembo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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TRADING SYSTEM

1. GET UP EARLY- Wake up around 6AM, go over morning routine, make sure mind is sharp and
relaxed before opening a chart.

2. OPEN NEWS- Check out the news calendar to see if they will be any important news, take
caution if there will be any important news announcements.

3. If there are any trades open, manage them and make sure the trade is still valid, if no trades are
open begin to start analyzing the pairs. Have a maximum of five (5) pairs to analyze.

4. Select only 1-3 setups to take depending on your account size. The setups should be those you
understand and you are completely confident in. Write down how I would like to trade them in
my journal and note every move from then on. Forecast the move and what I want to see. If it
develops as expected-PERFECT, if not- LET GO! Chasing a trade only leads to regret.

5. WAIT VERY PATIENTLY FOR PRICE TO DEVELOP NO RUSH NEEDED! .

TRADING PLAN

Monthly, Weekly key levels: Mark the major monthly levels with a horizontal line (Black). Make sure
they are round figures. Add a thin rectangle on the line.
After that go down to the weekly timeframe and mark the major support and resistance levels with a
horizontal line (any colour of your choice), make sure these lines are placed on the wicks.

 Put 2 Moving Averages, the 8 EMA and 14 EMA.


Step down to D1, look at the Daily structure this is what will give you the direction of the market or who
is in control of market direction.
What is the D1 trend? is it higher lows or lower highs. What is the overall bias? What are we expecting
a new higher high or lower low, Mark the level you are anticipating price to reach.
Plot Trendlines (from wick to wick), after every touch we must see a strong move for the trendline to be
correct. As long as the trendline is not broken and price structure is not broken, the trend is still valid.
Step down to the H4 timeframe, in the H4 timeframe the structure is the same as the daily do not go
against the H4 structure unless it is broken. Look for what to expect Higher Highs or Lower Lows
depending on the bias. Mark the last level with an ellipse. Once the H4 structure has been broken wait for
price to pullback and reach an important level on the Daily level you marked once it does wait for a
reversal.
Fibonacci: Plot the Fibonacci on the H4 timeframe from one swing to another, wait for price to pullback
to 61.8-78.6% golden Fibonacci levels. If they align with support and resistance levels the higher the
possibility the move will happen.

Candlestick formations, once price gets to the levels you are anticipating wait for it to create a
candlestick formation showing a reversal like an Engulfing Candle, pinbar , spinning tops, Dojis, inside
bar etc. There is a higher probability of a reversal when the candles are formed on round figures and
golden Fibonacci levels.
REMEMBER: IT IS NOT ABOUT WHAT THE CANDLE IS BUT WHERE THE CANDLE IS.

Do not execute the trade immediately the candle closes wait for price to crossover the moving averages
while aligning with different confluences (round figure level, Fibonacci level, Trend.

Your stop loss should not be more 30-50 pips.

 Take only the best visible set ups with clear breaks and retests. let them be clear and with
confluence, this means that I will have to take less trades but less is more in the markets.

PSYCHOLOGY NOTES

I AM A CONSISTENT WINNER BECAUSE:


 I do not expect anything from the current trade, Profitability comes with consistency.
 I completely predefine my risk before entering a trade therefore, when a trade loses, my
account and psychology are not affected.
 I act on every opportunity presented to me that meets my trading plan without preservation or
hesitation.
 I have a strategic way to take my profits that way I pay myself as the market makes money
available to me.
 I continually monitor my susceptibility for making errors by monitoring my thoughts and
actions.
 I understand the absolute necessity of these principles for consistent success and therefore, I
never violate them.

RULES FOR THINKING IN PROBABILITY


BY MARK DOUGLAS.

I. Anything can happen. Do not let the emotions make you take actions that are not in line with
your plan.

II. I put on a trade without the slightest bit of hesitation or conflict and just as freely and without
hesitation admit that it isn’t working.

III. I have accepted that no trade has a guaranteed outcome and the possibility of being wrong and
losing is present.

IV. An edge is nothing more than an indication of a higher probability of one thing happening over
another.

V. Every moment in the market is unique. Anything that you are perceiving “NOW” in the market
will never be exactly the same as some previous experience that exists in your mental
environment.

VI. Be rigid in your rules and flexible in your expectations not the other way around.

VII. There is a random distribution between wins and losses for any given set of variables that define
an edge.

VIII. You don’t need to know what is going to happen next in order to make money.

FOR MORE INFORMATION ABOUT FOREX, YOU CAN FIND ME ON:


INSTAGRAM: @magnafxinstitute
YOUTUBE: MagnaFXInstitute

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