Hi guys, often heard about pre planning night before trading or even weeks before trading preparation. Need advise and sharing on what is actually the preparation that most traders do? For example…chart analysis? Money / Risk management? Fundamental? Technical analysis? Or is there anything else…?
Thanks in advance.
If you are new to forex the first thing you should be doing is reading ,you should know what trading is .
you should complete the course provided by babypips which gives you an upper hand on technical analysis then open a demo account and apply the knowledge there.The software i would recommend is metatrader 4 or 5 its up to you which version you choose. after downloading the sotware you must know how the software works
practise for about 6 to 8 months and apply all the tactics that you know
i am new to this, been here for 2 months and the hard part is to find the patterns in charts and apply right tools for maximum profit
i guess we all have to practise unless we become perfect
A plan is essential. You can’t know what the market will do but you have to know what you will do about it.
TA can tell you which markets to be ready to trade, where your stop-loss should be, where to enter, plus obviously the direction. You must also have a plan for taking profits, though I don’t like to limit myself to x pips in this.
I only use fundamentals to identify some markets which I would wish to avoid, or to highlight upcoming news events, I might wish to avoid holding across these if they’re significant.
A plan is essential, as its how you apply your skills and knowledge. Without these, you might as well be betting on a coin toss.
Thanks bro for the advise. I have been trading with demo account for less than 1 month cause so eager to go live trading. Starting was quite good without any preparation, just based on the current trending, but when it come across the fundamental anlysis / news event, my order always hits my stop loss, which eventually burst up my capital everytime eventhough i already plan for the risk management…is there anything i can do or any preparation to overcome that situation…?
I do meditation in every morning before opening trading chart; that’s my pre-trading preparation!
It is a good idea to avoid the event news rather than to face it…i have tried pending order prior an event but 90% of it wont work. The retracement of the chart is too big in term of pips before it move according to the trending. Or can i place order in between order to gain profits while waiting correction of the chart?
Good idea. A clear mind always make the right decision especially on the entries and exit position.
How about technical analysis preparation? What indicators often used?
Hi robfx17.
In early days in trading, as has been said, I would watch the economic calendar available for your broker or any number of forex websites and just be in cash when an announcement relevant to your currencies is coming out. Especially unemployment statistics, central bank rate announcements, inflation data etc. Better to be cautious and in cash than to widen your stop to accept the volatility but get taken out miles away from your comfort level.
Also worth looking at the other pairs with your currencies, see if they’re going the same direction you want to put a trade in. e.g. if you want go short on EUR/JPY, its worth checking if the other EUR-based pairs are also bearish, and if the JPY pairs are bullish.
Going with the trend is good discipline. Don’t leave home without it. But make sure you have a firm definition of what is a valid trend for your style and time-frame - if in doubt, stay out, another opportunity always comes along.
Hello Sawiris! I am interested to know details about your meditation process! Have any specialty on meditation for trading? Or is it looks like general processes of meditation?
No, there is no private terms and conditions of trading meditation! I just open a meditation video and then close my eyes, and then I follow general steps of meditation, that’s it!
Some people love trading on news. To me, a news release is like throwing bloody chum into shark infested waters. The water starts to churn, and even the most careful swimmer can get bit if they stay in the water.
Now other people LOVE trading news releases, and many traders make a LOT of money at these times. And I know that I SHOULD be able to do the same. But my results show otherwise, so for the foreseeable future I steer clear of news releases.
And to bring this reply back to OP’s question, part of my trading prep for the week is to find out what news is scheduled for release and when, and then avoid trading from 15 minutes before to a half hour after.
That’s like asking “What should I have for dinner?” There are many technical indicators. Many of them show the SAME information, just show it differently. How many technical indicators to use, and what ones, are mostly a personal choice and are dependent on your trading style and how you constructed your trading system.
You ARE using a trading system that YOU constructed yourself so that you thoroughly understand how it works, that for every trade shows you the Entry Point and at lease three Exit Points (Stop Loss, T1 & T2), and that you have thoroughly tested backward & forward, right?
Just to add, I also watch webinars. DailyFX offers weekly outlook and closing bell webinars for free. You can attend the live session or watch the recorded ones thru their you tube channel. I also follow Anil Mangal who conducts free webinars touching on wave analysis every Monday. Here are the links:
I hope these helps
Thanks for sharing your process! Now I’ll try to make a daily routine on trading meditation before my sleep!
I pay more attention to psychological preparation since emotions used to have an unacceptably large impact on my trading. Until I realized that it was my main weakness and started working on self-control.
I trade based of my personal trading strategy, it’s a combination of 4 default and 2 custom indicators! So for me, trading preparation means, counting the positions of all of trading indicators according to my strategy! Besides, I also count currency correlation! That’s my preparation!