Is it enough to just study the market movement and make a trade? What are the things to consider before making a trade?
If its a short-term trade, 10 minutes out to 12 hours, I check the economic calendar for important news re the currencies in question - NFPR’s, interest rate announcements, unemployment figures, GDP figures. If anything shows up I stay out of the trade. If its a long-term trade, 1-20 days, I ignore all that stuff.
However, if the Dow is weak, this usually indicates the AUD and NZD will also fall, while the CHF and JPY may rise.
Hi Justinoe, i just started trading a week ago. Did well with GBPUSD when it was stable. (350$ off of 140$, in 1000-3000 minis) thought the long was coming not relizing GBP was going under. Played long for 2 days. Last night, with next to no money ($25 with -15 margin) sunk everything I had as my margin went positive into AUDUSD, NZDUSD, GBPUSD all short. Woke up to 50$+ at closing, however lost some at close and my short stopped a bit higher then it dropped. (If goes down on monday do I get that adjustment?) I forgot to close ( tried before 4:00pm EST) not relizing it closed at 3:30pm. I have couple trades bought in at different times in those currency’s and quite high (200+pips at least but only in the mini lots). There is insane pressure on all the currencys, that suggest they should still trend down more. Come Monday, do you think the gap will go up and bounce off nearing support lines, or with the economy in shambles, clients still long, and the trade war, that all those currency’s will continue downwards?
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