How many cues do you have to trade?/what steps do you take

Beginner Questions
1

And what are your cues? Try to be as specific as possible please, I’m trying to deepen my understanding on how much I should really rely on before initiating a trade.

Do you first analyze charts? What do you analyze on your charts? How many charts do you use? What charts?

I’m about to start reading demo and I just wanted a guideline to how people set up there trades.

I guess a better way to word this is; what steps do you take leading up to a trade?

Thanks!

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2

  1. Watch News
    (A) Quick look at markets
    (B) Watch for developing
    financial/worldnews

  2. Scan Charts:
    (A) Start with monthly/weekly
    1) Identify long trend/mid
    trend/current direction
    2) Identify inplay s/r levels
    3) Gauge Current PA
    (B) Move to daily/4hr
    1) Identify trend/direction
    2) Identify latest S/R levels
    3) Gauge PA

  3. Analysis
    (A) Short trend/direction vs
    Long trend/direction.
    Same direction? Diverging?
    (B) How strong are the current
    s/r levels on the daily/4
    hour? Are they at or near
    monthly/weekly levels?
    © Current price in relation to
    S/R levels. Is price trading
    at or near recent s/r levels?
    (D) Look for favorable PA
    patterns on daily/4 hr. If all
    other conditions are met,
    this is what triggers order
    entry

  4. Fill out my order sheet:
    A) Levels
    1) S/L
    2) Entry levels
    3) 25% to SL level / 50% to
    SL level / 75% to SL level
    B) Risk tolerance, Lot size, lot
    distribution, spread
    C) Plot contingency stategy
    "if price hits this level, i’ll do
    this"
    D) Plot P/L levels
    1) P/L of each individual
    entry @ key price levels
    2) P/L of each individual
    entry under all possible
    contigency executions
    3) Combined P/L for all
    entries @ key price levels
    and under all potential
    contingency executions
    (E) Risk
    1) Max risk
    2) Contigency risk(s)
    3) B/E for each entry level
    4) Combined B/E under all
    conditions

  5. Enter market orders

  6. Set alerts

  7. wait for entry orders to be triggered or wait for PA to invalidate entry orders

3

For me the charts are everything.

But as well as the information that is on the individual chart, I also look at information about the charts. That is, if I’m thinking of buying EUR/JPY, I also look at the other EUR-based pairs, and the other /JPY pairs. If the other EUR pairs are falling, or other /JPY pairs are rising, I’m going to need much greater conviction than usual to carry on with my original plan.

The best charts to use are daily, purely because the TA they show is more dependable.

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