Acquiring the
ability to formulate a strong trading plan and implement it is vital in online
trading. A well-crafted plan will provide you with direction on selecting the
suitable market to trade in, help you identify the ideal moment to take
profits, or recognise when to close loss-making positions. In this article, we
will look at what a trading plan is and the various steps you can follow to
build a strong trading process.

Building a
strong trading plan and creating a strong trading process is not an easy task
and should be revised according to your skills and progress.

One of the
first things you need to do is write a comprehensive plan with clear objectives
that cannot be changed during trading, but that can be reevaluated when the
markets are closed. This plan should be adjusted based on changing market
conditions and your own increasing skill level. It’s crucial that you create
your own plan, taking into account your trading style and objectives. Using
someone else’s plan would not reflect your unique trading characteristics.

What is a
trading plan?

A solid trading
plan is a thorough guide that aids in making decisions related to your trading.
It assists in determining what to trade, when to trade, and how much to trade.
It’s essential to develop a personalised trading plan rather than using someone
else’s plan as your own as their level of risk tolerance and available funds
may vary greatly from yours.

A trading plan
is important because it can assist in making rational trading choices and
defining the ideal parameters for your trades. It is beneficial to have a
well-structured trading plan as it can prevent impulsive decisions made in the
heat of the moment.

Trading plan
vs. Trading strategy

A trading plan
is a methodical approach utilised for identifying and trading securities,
taking into account various factors such as investment goals, risks, and time.
Having a strong trading process will help you establish guidelines and criteria
for selecting asset classes and executing trades. It should be noted that a
trading plan is distinct from a trading strategy, which dictates how to enter
and exit trades to maximise profitability and minimise risk exposure. A trading
strategy may be based on either technical analysis or fundamental analysis.

Advantages
of having a trading plan

1. By having a
strong trading process in place, you can trade easily without having to waste
time or energy, as you have already done all the hard work.

2. A plan will
guide you to make decisions without any emotional effect, and will be ready to
take profits or cut losses rationally.

3. By following
your trading ideas and plan, you will have a clear head and will be more
objective, gaining more insight into your trades and finding what works and
what doesn’t.

4. By keeping
records, you can learn from your mistakes and make better and more
well-informed trading decisions in the future. A profitable trading process may
take time, and will involve challenges and mistakes, but as long as you
minimise losses and improve on past mistakes, you will find the confidence and
build the trading strength to face new challenges and be more prepared.

Trading plan:
Things to have in mind

Your trading
plan may encompass any information that you find helpful, but it should always
try to address the following questions:

1. Do you have the skills needed to start
trading?

2. What motivates you to start trading?

3. How much time do you want to commit to
trading?

4. What are your trading goals?

5. Are you ready to take risks?

6. How much capital can you allocate for
trading?

7. What markets do you want to trade?

8. What steps will you take for keeping
records?

1. Skills

You need to
approach trading as a job and not as a hobby, ensuring that you have done your
homework, acquired the necessary knowledge and practised your strategies.

2. Motivation

To do well in
trading, you need to have an incentive that is deeper than the desire to make
money. Find out what trading means to you at a personal level and why it is
important to you. What draws you to the markets, for example? If you have the
desire to solve a puzzle, enjoy the feeling of trading as a stimulating and
intellectually challenging experience, or as an exciting game of probabilities
and chances then you know what makes you tick as a trader. You may like the
adrenaline of competition or making decisions based on instinct, or you may
want to enjoy working from home. If you know the answer, then you know your
goals and you can formulate a style of trading that fits your profile.

3. Time

Think about how
much time you can dedicate to trading. Can you trade while you’re working, will
you make many trades a day, or you’ll need more time? Don’t forget to set aside
enough time to prepare for trading, practice your strategies, get more trading
tips and trading ideas, and analyse the
markets.

4. Goal-setting

You should set
goals you can achieve and be very specific. Don’t set unattainable goals,
otherwise you will get disappointed.

5. Taking risks

Before you jump
into trading, it’s crucial to figure out how much risk you’re comfortable
taking on. This includes considering how much risk you’re willing to take for
each trade as well as for your overall trading strategy. Keep in mind that
market prices are constantly fluctuating, and even the safest trades come with
some level of risk. Some beginners prefer to start with a lower- risk approach
to get a feel for things, while more advanced traders are willing to take on
more risk in pursuit of bigger rewards. Ultimately, it’s up to you to decide
what level of risk you’re willing to tolerate.

6. Capital

Before you dive
into trading, it’s important to take a look at your finances and figure out how
much money you can comfortably allocate towards it. Remember, never risk more
than you can afford to lose because trading can be risky and you could end up
losing all of your trading capital. If you don’t have enough funds to start
trading yet, you can practice on a demo account until you’re ready to go live.

7. Markets

Select the
market you want to trade in. Are you trading forex or shares, indices or
futures? Each one of these is different and will require specific knowledge.
Learn as much as you can about each asset class including how volatile the
market is and the factors that influence the price of each asset and trading
instrument you want to trade.

8. Keeping
records

If you want
your trading plan to be successful and build a strong trading process, it’s
important to keep a record of all your trades in a trading diary. This will
help you figure out what’s working well and what isn’t. If you ever deviate from
your plan, make sure to write down why and what the outcome was. The more
detailed your diary is, the more helpful it will be.

If you’re ready
to start trading, you can open a live account with T4Trade or try out the demo
account to practice without risking any money.

T4Trade live
trading account

To open a trading account, you can visit T4Trade’s website and click the Sign up button at the top right-hand corner. You can then fill in all your personal
details. When your account is approved, you will receive an email with your
trading account details, how to fund your account and how to upload all the
required supporting documentation. To unlock the full functionalities of your
account, you will have to upload proof of identification (passport, ID, driver’s
licence) and proof of address (recent utility bill, bank statement, or any
other official document less than 6 months old).

For more information, you can log in
to the Client Portal or contact T4Trade’s friendly customer support team which is always available 24 hours a
day, 5 days a week.

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

This article was written by ForexLive at www.forexlive.com.

This fits with what we saw from the other state readings earlier, with the monthly reading showing an increase of 0.3% in consumer price inflation. Putting everything together, the national reading later should show annual headline inflation at around 6.9% to 7.1% roughly perhaps instead of the 7.3% reading estimated.

This article was written by Justin Low at www.forexlive.com.

In less
than two weeks, the Finance Magnates Africa Summit (FMAS:23) will officially be
underway. The inaugural launch of FMAS:23 will be held in Johannesburg, South
Africa on May 8-10 at the prestigious Sandton Convention Centre, one of the
most luxurious and well-known districts country.

With the
event right around the corner, attendees are encouraged to take advantage of
exploring FMAS:23 detailed agenda. The 2.5-day event includes a robust slate of
sessions, panels, workshops, and much more.

If you
have not already done so, the full agenda for FMAS:23 is already live and can
be accessed by the following link. A total of
four industry verticals are being covered at length during the summit, focusing
on online trading, payments, fintech, and blockchain & digital assets.

Trade
GPT: AI and Innovation in Trading Technology

The latest breakthroughs in generative AI have taken the
world by storm, and the world of trading is no exception. With AI taking the
media and world by storm seemingly overnight, it’s natural that this trend be
covered at length at FMAS:

This includes one of the event’s most hyped panels this
May, Trade GPT: AI and Innovation in Trading Technology, taking place on May 10, 14:00-14:40 at
Centre Stage.

In this
session, seasoned experts will share the impact they see on the industry, and
reveal the tools, features, and platforms they are building to make brokers and
clients prosper. This panel for FMAS:23 will include the following talented speakers:

• Wassim
  Khateeb, Chief Commercial Officer, FXCUBIC
• Yakubu
  Teri Ishaku, CEO/ Founder, Kwakol Markets
• Ran
  Strauss, Founder & CEO, Leverate
• Cristian
  Vlasceanu, CEO, Centroid Solutions
• (Moderator)
  Ankit Shah, Global Head of Fintech, GTN

According to Mr. Khateeb, “I believe it is a very hot
topic these days following the rapid emergence of AI softwares and we will be
discussing the implications it can have on Financial trading.”

Indeed, “With the evolution of the ‘GPT’ side of AI,
democratising AI driven trading models to investors / traders can be a game
changer. There will initially be some fear followed by errors and then
stabilisation before eventually acceptance and integration. We have a long way
to go, but this is the direction the trading world is moving towards, and it
will only get more interesting from here,” explained Mr. Shah.

The panelists
will also look to answer the following questions: What chat GPT3 and 4 can, and
cannot, do for traders and industry participants? How can fintech firms utilize
the new AIs to increase efficiency? What has been achieved in automation and
what is yet to come? Which trends will define 2024 in retail trading?

“In today’s fast paced financial markets, AI brings
many new opportunities and advantages that empower investors and traders, by
automating solutions for brokers. Brokers should empower their traders by
integrating with a provider that offer the most advanced AI trading features,
so that on their website or mobile app, they can make more informed decisions,
reduce their risks, speed up their response time, and increase profitability,” noted
Mr. Strauss ahead of
the event.

Find out
the answers to these questions and much more this May.

FMAS:23 – The Event of the Year

The
largest event of the year in Africa is expected to draw upwards of 3000+
attendees, 70+ exhibitors, 100+ brokers, and 50+ speakers. Each attendee is also
available to discuss, engage, and network with during the duration of FMAS:23.

Of
course, the aforementioned panel is just one of several different sessions available
for attendees at FMAS:23. With such a diverse content track, there is truly
something for all attendees!

Join other
industry leaders, executives, brands, and traders to discuss the future of
trading on the continent, fintech opportunities, and much more.

“Since this is the first time this event is held in South
Africa, we are keen to explore cooperation opportunities, meet with partners
from the region and engage with new potentials,” stated Mr. Vlasceanu.

FMAS:23 will
be attracting the biggest talent, individuals, and brands in the industry. All
attendees are encouraged to mingle and engage with each other in what will be
an unforgettable event.

See you
in Johannesburg this May!

This article was written by ForexLive at www.forexlive.com.

• EUR/USD stays in the hunt for that upside break this week
• A warning signal on China’s post-Covid recovery
• Eurozone April final consumer confidence -17.5 vs -17.5 prelim
• SNB provided $121 billion in emergency liquidity to support UBS‘ takeover of Credit Suisse
• Goldman Sachs raises forecast for BOE rates to peak at 5%

Markets:

• NZD leads, CHF lags on the day
• European equities mixed; S&P 500 futures up 0.5%
• US 10-year yields up 3 bps to 3.46%
• Gold up 0.5% to $1,998.35
• WTI crude up 0.5% to $74.65
• Bitcoin up 1.9% to $28,950

It was a quiet session for the most part as headlines were few and far between in European trading today. A lack of key economic releases didn’t help with that as markets settled into a more sideways mood on the session.

Regional equities are mostly little changed but recovered after a mildly softer open, as US futures – tech in particular, again – are buoyed on the day. Bond yields are also holding slightly higher and that is keeping the calm ahead of the US Q1 GDP data later as well as some key risk events on Friday tomorrow.

The mood in FX was more lackadaisical with the euro, pound and yen all keeping little changed against the dollar.

The only decent movers were the antipodeans, which already came during Asia. AUD/USD is up slightly by 0.3% to 0.6615, recovering a bit from six-week lows. Meanwhile, NZD/USD is up 0.5% to 0.6150 as sellers lack some follow through to test the 0.6100 mark.

There’s not much else to comment as it was a bit of a placeholder session, so we shall see if markets will have any appetite to move after the US data later. If not, it might be a bit of a wait until tomorrow’s events.

This article was written by Justin Low at www.forexlive.com.

They lowered their forecast from 5% to 4.75% towards the end of last year but are now switching it back. A 25 bps rate hike for next month is almost a given now as inflation pressures continue to persist but will we see policymakers be able to keep tightening until 5%? The current market pricing is definitely suggestive of that potential, though less assured as it was last week:

This article was written by Justin Low at www.forexlive.com.

The amount was CHF 108 billion, so that roughly equates to $121 billion in dollars. Because of that, secured loans and loans under emergency law in Q1 surged to CHF 112.4 billion as opposed to just CHF 4.4 billion in the same period a year ago.

For some context, the liquidity provided here is mostly for loans against collateral under the SNB’s normal facilities but also emergency aid granted to the big banks after the run on Credit Suisse last month.

The numbers above may look scary but fret not, things have calmed down considerably as evident by the weekly sight deposits data.

This article was written by Justin Low at www.forexlive.com.

The dollar is little changed against most major currencies, with EUR/USD still sitting in a less than 30 pips range on the day. The pair is stuck around 1.1035-50 mostly on the session as traders continue to weigh up whether or not the euro has the potential to break out on the week.

USD/JPY is also flat at around 133.70 at the moment while GBP/USD is down 0.2% to 1.2445 but not really indicative of much on the week. For the latter, the 1.2500 threshold remains key for any upside breakout.

Elsewhere, AUD/USD is up 0.2% to 0.6610 but just off fresh six-week lows from yesterday while NZD/USD is up 0.4% to 0.6140 as sellers are not yet able to find added impetus to retest the 0.6100 mark from the March lows.

In other markets, we are still seeing more of the same as noted here earlier. It is quite the snoozefest until we get to the US Q1 GDP data later it would seem.

This article was written by Justin Low at www.forexlive.com.

• AUD/USD down to six-week lows after CPI data earlier
• Dollar teeters on the edge against the euro, pound again
• Advisors have lined up potential purchasers of new First Republic stock – report
• BOJ has no reason to move this week, says Japan’s former top currency diplomat
• Germany May GfK consumer sentiment -25.7 vs -27.9 expected
• France April consumer confidence 83 vs 81 expected
• UK April CBI retailing reported sales 5 vs 0 expected
• Switzerland April Credit Suisse investor sentiment -33.3 vs -41.3 prior
• US MBA mortgage applications w.e. 21 April +3.7% vs -8.8% prior

Markets:

• EUR leads, AUD lags on the day
• European equities lower; S&P 500 futures up 0.1%
• US 10-year yields up 3 bps to 3.425%
• Gold down 0.1% to $1,995.18
• WTI crude down 0.5% to $76.70
• Bitcoin up 3.5% to $28,959

There weren’t many headlines during the session but there were some decent market moves all around.

It started off with a bit of a mixed picture in equities, with European stocks looking heavy while US futures were buoyed by tech shares. Microsoft reported stronger profits than estimated while Alphabet announced a $70 billion stock buyback and that propped up Nasdaq futures before a bit of a pullback in gains.

Bond yields were also higher but gradually slumped during the session before a late jump after some potential good news for First Republic Bank. 2-year Treasury yields slowly trickled down from 3.95% to 3.89% before jumping up to 3.96% on the headline.

USD/JPY also got a jolt higher as such, erasing losses from 133.30 to around 133.70 levels at the moment.

There were other more interesting moves in FX though, with EUR/USD climbing all the way from 1.0990 in the handover from Asia all the way to 1.1060. There are plenty of large option expiries in the pair, with one layered around current levels at 1.1030-45 so just be wary of that.

The pound also capitalised on the dollar softness with GBP/USD rising from 1.2430 to a high of 1.2490 during the session.

The aussie and the kiwi failed to find much respite though, with sentiment in the former being more of a drag. AUD/USD slumped to 0.6600 and fresh six-week lows after markets are now convinced that the RBA will not raise rates in May, following softer CPI data earlier in the day.

This article was written by Justin Low at www.forexlive.com.

It looks like the big boys in the US may be called in for one last favour to First Republic. According to sources at CNBC, the supposed proposition will go something like this:

„Purchase bonds from First Republic at above-market rates for a total loss of a few billion dollars – or face roughly $30 billion in FDIC fees when First Republic fails.“

We are seeing bond yields jump on the headline, with 2-year Treasury yields now up to 3.95%:

Mind you, this is just a potential good news for First Republic. It is not a guarantee whatsoever that things will play out in this manner. But for now, it seems to be providing a brief respite for risk sentiment.

/US Dollar

This article was written by Justin Low at www.forexlive.com.

• Prior -8.8%
• Market index 216.9 vs 209.2 prior
• Purchase index 169.1 vs 161.6 prior
• Refinance index 457.6 vs 449.8 prior
• 30-year mortgage rate 6.55% vs 6.43% prior

Despite higher rates in the past week, US mortgage activity picked up slightly after a sharp fall in the week before that. Both purchases and refinancing were higher but overall, the levels are still very low following the massive slump last year.

This article was written by Justin Low at www.forexlive.com.