Markets can remain irrational longer than you can remain solvent.
This is what I do before every trade:
If I'm trading on 1 minute candle sticks I do the following:
Check 5M, 15M, 30M, 1H, 4H, 1day candles to establish direction of trend.
Look for Fibonacci retracement levels.
Look for major support / resistance levels.
Look at previous price action - previous pa will usually mean a similar price action after i.e. randing / trending / consolidation.
Look at market sentiment on the trend on the forum ¬ maybe.
Look at other sources of technical and fundamental analysis.
Look at what news releases are coming out for that currency within the next two weeks. Look at the forecasts, build that into the price and assess what impact this may have on the currency. Always think worst possible scenario and try to protect against it.
Look at the commitment of traders report for market sentiment.
Look at fundamental news articles.
IF the above factors line up with the strategy's technical indicators, then trade execution is okay.
Decide upon an take profit and a stop loss.
Thanks for sharing thew useful tips. These tips are really very valuable and knowledge and I think to ensure our trading and get a successful results our first approach should be to watch and judge the forex market and learn from other forex marketer doing business here
I will give you the link to the best place to learn in:
http://www.babypips.com/school/ (Forex Training Online: Learn Foreign Exchange (FX) Currency Trading)
Every forum I read all talk of these place, I know it is good, I used and still use it.
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