My Thoughts on Global Currency Market

Good day fellow traders.

I am new to the Forex market, and thought it would be a good idea to jot down my thoughts and the general direction that I’m going after a week or so or studying.

I’m sure as time goes on, my thoughts will change based on what I learn and from the advice of others.

So far I know that the Forex market is the riskiest of the markets and also the most lucrative if you become a successful trader. I also hear that 90% of traders fail in this market, so I know that I have to go above and beyond to make sure that I am part of the 10% that succeeds.

Most likely I will be a day trader or scalper and will trade one of the major pairs.

  1. I will use multi-frame analysis and look from longer time frames to shorter and make sure that I check at least one above and one below the time frame that I am trading.

  2. I will look at the overall market to see if we are in a bear or bull market and trade with the trend.

  3. I will find support and resistance levels.

  4. I will draw in trend lines.

  5. I will keep track of daily highs and lows.

  6. I will look for candlestick patterns.

  7. I will use indicators to confirm the candlestick patterns and or other indicators. I will use trend, momentum, volume, volatility and cycle indicators and Fibonacci.

  8. I will look over the fundamentals.

  9. I will look over the market sentiment.

  10. I will do quantitative analysis of the market.

  11. Following a trading plan and money/risk management rules I would use 1 through 10 (the trading system) to speculate on entry and exit points, using stop loses and trailing stop loses if the market is going in the right direction.

  12. Keep accurate record of my trade and the analysis that I used for that trade.

This what I’ve come up in ten days of study, and just want to hear some opinions and advice on my general direction.

Thank you.

Sounds great but perhaps too much to sustain.

Eg would the fundamentals add value when you have so much technical analysis.

and you may not find many trades meeting all conditions
My 2 cents

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Hi Solo.

Sounds like a good plan, but I agree with nanu7 about the value of fundamentals given the technical approach you plan to take.

An understanding of fundamentals or at least being aware of important economic events/releases is one thing.

Trying to determine the impact on price as a result of fundamentals or economic events/releases and all the correlations that are involved is another story. Esp if your already using TA.

Good luck to you.

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As others said above
It definitely looks a good plan.
But keep in mind with what amount and at what time you enter the market.
Because market can be extremely luring and also dangerous at the same time .
All the best

Good plan for success, seems that you didn’t leave anything out, that these are well known truths, but it doesn’t always work out to trade in the profit. But I wish you good luck!

I appreciate your plan but, don’t forget to work on fundamental analysis! All the best!