The first thing most successful entrepreneurs do before starting a new business is they create a business plan. A business plan includes, amongst other things, an objective, projections, resources, and some specific ideas of how they plan to accomplish their goals.

Why not do the same with Forex?

In my opinion, having a Forex trading plan is a must in order to help you become a successful FX day trader.

A business plan is like a road map; in day trading, it would serve the same purpose. How do you plan to arrive at your destination if you don’t know how to get there?

I learned this concept throughout my own life and I decided to apply it to my Forex trading career. In my previous blog post (”Want to be a Forex Day Trader?“), I wrote that the first thing I did when I started day trading currencies was to figure out how long it was going to take me to become a millionaire. Well, here is a 24 month snap shot of what that projection looks like.

By applying the power of compounding to your account, you would be able to gradually reach your goals. This was the first step of my day trading plan. Make one for yourself, but don’t make unrealistic projections!

A great day trading plan should include:

• - Profit projection.
• - Specific time frames in which you plan to accomplish your goals.
• - Type of trader you are.
• - Strategies you will be focusing on.
• - Back-testing routine.
• - Money management rules.
• - Pitfalls and emotions to avoid.
• - And a clear, Ultimate Goal!

Remember, day trading currencies is a business and if you are clear about your ultimate goal, it will be easier to get there.

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