Trading Plan Tweaks for Forex Traders

It’s a Monday and I logged into the Discord for my First 40 Trading Club members and saw a bunch of new students who had joined since my most recent workshop.

They were posting welcome messages, introducing themselves, sharing what they trade, and what they’re most excited for.

Two things stood out:

1. The variety of asset classes our Tribe members trade.
2. How many of them have been trying to trade for so long without a real plan.

So that gave me an idea: why don’t I share some trading plan tweaks that anyone can keep in their back pocket — depending on what market they trade?

And you might think, “Alright, if she’s going to do this, she’s going to start with futures, because she’s an ES gal.”

But actually, I’m going to start with Forex.

Why? Two reasons. First, I can see how many new members have joined specifically to trade Forex. Second, I still do one-on-one mentorships where I build trading plans, and one of the more recent plans I built was for a Forex trader.

So let’s dive in.

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1. Sharpen Your News Monitoring

In your Section 1: Start Trading Mode, monitoring the news is extra important in Forex.

Here’s why: most U.S.-based traders only need to keep an eye on the “high importance” reports — jobs numbers, Fed meetings, CPI, those sorts of things.

But as a Forex trader, you need to think about two more layers:

• Minor reports that can move the specific currency pair that you’re trading.
  
• International announcements, not just U.S. news.
  

For example, you could go to ForexFactory.com. Look at the calendar and, based on the pairs you trade, do some research to see which reports actually matter for you.

So remember — when you’re trading Forex, you really need to be paying attention to the news tied to the countries behind the currencies you’re trading.Especially if it’s not the U.S. dollar. Forex traders need to go beyond the big U.S. reports and track country-specific news for their pairs.

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2. Build Position Sizing Into Your Setups

The next factor to consider is in your Core Setups, you’ve got to have a way to quickly and accurately calculate the amount of currency to trade, aka the position size.

This is different from other asset classes. In Forex, your position size is based on the currency you’re trading .

Now, I can only give so much broad advice here because it also depends on whether you’re scalping, day trading, or trading longer-term like a swing trader. But I will say this:

• Ideally, use a position size calculator in your charting platform or brokerage. That way, you know the exact amount of currency to trade that fits YOUR trading plan account size.
  
• You can sometimes pre-set a lot size if your account size and risk parameters are big enough. But don’t skip the step of double-checking.
  

That double-check is the part I want you to build right into your setups.

Position sizing isn’t just important in Forex — it’s essential to bake into your plan.

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3. Money Stops vs. Logical Stops

Let’s talk about stop placement.

You don’t want to just say, “Okay, I’ll use one pip,” and leave it at that.

Normally, I’d tell traders to use what I call a logical stop — placing your protective stop order beyond a significant technical level on the chart. For example, if you’re buying, your stop goes below the most recent low.

That works well in a lot of markets. But in Forex, because of the volatility and how fast pairs can move, that’s not always ideal.

And that’s okay.

Instead, you can use a stop that’s more directly related to your entry price — just a certain number of pips away, one way or the other. That way, you can still manage your risk without taking on more than your account can handle.

That’s called a money stop.

So remember: in Forex, a logical stop would be nice, but it’s often better to start with a money-based stop. That way you’re minimizing your losses, and your bigger wins can carry your account forward.

In Forex, money stops often protect you better than logical stops — especially starting out.

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Wrapping Up

So those are a few pro tips for how to tweak your plan if you’re a Forex trader:

• Pay closer attention to country-specific news.
  
• Make position sizing part of your setups.
  
• Use money stops to keep losses contained.
  

I’ll be back with more in this blog series for other asset classes.

In the meantime, drop a comment and let me know if you’re a Forex trader — did this help you? Do you have any tweaks of your own you would add?

~Hima