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Top 3 Best Things To Do Everyday Before Trading Forex

Trading in forex is not gambling, Before we enter a trade we must have a reason why we enter buy or sell for our trade. Don't trade without a reason if you don't want to think of a reason why the market always goes against you.

 Here is the list for the most important things that we should check daily before deciding to trade forex.


Daily Chart - Looking on a daily chart will give us a hint what was happening on the currency pair we choose. Check if the pair was near support and resistance so we can trade accordingly, Buy at support and sell on resistance. Check also on the daily chart if there is a big chance of breakout or reversal of current trend so we will not be trapped and we will avoid big sudden loss. 

Economic News Release - Everyday for 24 hours a day, News only vary on its impact from low, medium to high. Being updated to the news release schedule, we can avoid or take the chance to ride the waves and volatility of market. It is very important to know what kind of news are going to release in few hours specially for the scalpers that are entering big lot of trade and few pips target. High Impact news are very risky for scalpers due to too much volatility that can cause sudden increase or decrease of price. We should also be aware of high impact news release for 3 days ahead because sometimes the market sentiment prevails before the news was release, moreover, when we expect for big movements at the time of news release we are already too late to ride the market. 

Plan your Trade and Trade your Plan - Make a plan before trading, decide on how much you can take to risk. What would be the entry and exit. The time frame that you will be using and most of all, be firm to follow the rules, if you set a rule that one trade at a time or a maximum of two trades at a time, follow it, don't let your emotions overcome you because emotional traders will find it hard to become successful in forex trading.
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Comments

  1. Danny JamesNovember 19, 2013 at 8:36 AM

    this is good advice. I find all of what you wrote to be true, due to my experience when i was demo trading. well done!

    ReplyDelete

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