Trading Plan Reading Guide

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Part of a short series of articles on using MetaTrader4, written on request. This does not mean I endorse trading, MetaTrader4, or that I’d do this because I wouldn’t. I design and build IT systems, and that’s what I’ll stick to, ta. This article is “Trading Plan Reading Guide”.

To complement your trading plan and enhance your knowledge, it’s important to read widely from reputable sources. Below is a curated reading guide designed to help you cover various aspects of trading, from market fundamentals to advanced strategies. This guide is organized to align with your short-term and long-term goals.

Short-term Goals Reading Guide

1. Gain a Basic Understanding of Market Dynamics

Books:

  • “A Beginner’s Guide to Forex Trading” by Matthew Driver: A comprehensive introduction to forex trading, explaining basic concepts and market mechanics.
  • “Trading for a Living” by Dr. Alexander Elder: Covers the basics of trading, psychology, and technical analysis.

Online Courses:

  • Coursera – “Financial Markets” by Yale University: Provides an overview of financial markets, including forex, stocks, and commodities.
  • Investopedia Academy – “Forex Trading for Beginners”: An online course specifically designed for beginners to understand forex trading.

Websites:

  • Investopedia: Articles and tutorials on financial markets and trading concepts.
  • BabyPips: A free, in-depth forex trading education website.

2. Learn to Use the Trading Platform (e.g., MetaTrader 4)

User Manuals and Guides:

  • MetaTrader 4 User Guide: Official guide available on the MetaTrader website.
  • Broker Resources: Many brokers provide detailed guides and tutorials on using MT4.

Tutorial Videos:

  • YouTube Channels:
  • “MetaTrader 4 Tutorials” by Trading Heroes: Step-by-step videos on using MT4.
  • “Forex Trading Strategy” by ForexSignals TV: Practical tips and tutorials for MT4.

Demo Account Practice:

  • Broker Demo Accounts: Most brokers offer free demo accounts. Practice extensively to get comfortable with the platform.

3. Develop and Test a Simple Trading Strategy on a Demo Account

Books:

  • “Technical Analysis of the Financial Markets” by John J. Murphy: A comprehensive guide to technical analysis, covering various indicators and chart patterns.
  • “Forex Trading: The Basics Explained in Simple Terms” by Jim Brown: Provides simple trading strategies and practical advice for beginners.

Backtesting Software:

  • MetaTrader Strategy Tester: Built-in tool for backtesting trading strategies.
  • TradingView: Online platform with backtesting capabilities.

Trading Journals:

  • Edgewonk: A digital trading journal designed to track and analyze your trades.
  • Trading Journal Spreadsheets: Create a custom spreadsheet to record your trades and analyze performance.

Long-term Goals Reading Guide

1. Achieve a Consistent Monthly Profit Percentage

Books:

  • “The New Trading for a Living” by Dr. Alexander Elder: Advanced insights into trading psychology, strategies, and money management.
  • “Trading in the Zone” by Mark Douglas: Focuses on trading psychology and achieving consistent performance.

Articles and White Papers:

  • CFA Institute Publications: Research papers and articles on trading strategies and market analysis.
  • NinjaTrader Blog: Insights and tips from experienced traders.

Professional Advice:

  • Mentorship Programs: Consider enrolling in mentorship programs offered by professional traders or trading firms.

2. Build a Diversified Trading Portfolio

Books:

  • “The Intelligent Investor” by Benjamin Graham: Classic book on value investing and portfolio management.
  • “Common Stocks and Uncommon Profits” by Philip Fisher: Strategies for building and managing a diversified investment portfolio.

Online Courses:

  • Coursera – “Investment Strategies and Portfolio Management” by Rice University: Covers diversification and portfolio management techniques.
  • Udemy – “Portfolio Management” Courses: Various courses focusing on different aspects of portfolio management.

Research and Analysis Tools:

  • Morningstar: Research and analysis on stocks, ETFs, and mutual funds.
  • Yahoo Finance: Financial news, data, and analysis tools.

3. Transition from Demo Trading to Live Trading with Real Capital

Books:

  • “The Disciplined Trader” by Mark Douglas: Explores the psychological challenges of trading real money and how to overcome them.
  • “Reminiscences of a Stock Operator” by Edwin Lefèvre: A classic trading narrative that provides insights into the mindset and strategies of a successful trader.

Articles and Blogs:

  • Medium – Trading Blogs: Articles from various authors sharing experiences and lessons from live trading.
  • Broker Blogs: Many brokers offer blogs with tips and advice on transitioning to live trading.

Trading Communities:

  • Trade2Win: An online community for traders to share experiences and advice.
  • Elite Trader: Forums and discussions for traders of all levels.

By following this reading guide, you can deepen your understanding of trading concepts, improve your trading skills, and increase your chances of achieving your trading goals. Consistent learning and practice are key to becoming a successful trader.