I want to share my trading plan, here we go…
- Knowing what is really moves the market
Some news events that move the market are :
a. Interest rate decisions
b. CPI & Core CPI (Inflation reading)
c. GDP figures (Gross Domestic Product)
d. Employment Figures
e. Manufacturing reading
f. Trade balance
g. Consumer confidence
h. Retail sales
The first 4 data (bold) points are generally seen as higher impact news events and the outcome will impact our trading decisions.
This is the base rule to know how that 8 news event impact stronger currency.
Higher job creation = Lower unemployment = Higher wages = Increase spending = Higher inflation = Higher Interest rate = Stronger currency
High GDP also mean that there are more product produce by country, its means higher employment rate and will increase export finally also increase trade balance, good trade balance will also make those currency stronger.
Don’t move against the market
You must stick with your technical analysis, you have to prepare your ranging and breakout technical analysis (so far I have two currency) mixed with your own technical analysis, but don’t forget to take proper back testing. Build your back testing team to ensure your technical analysis have proper profit.
Built your monthly, weekly and daily trading setup
For weekly you have to get a high level summary of what news is coming out for a weeks ahead, when its coming out and what currency will be affected.
For daily prepare for the news in your trading time zone. Check what time the news is coming out, what currency it will effect and check what happened in the last trading time zone. You also have to check the previous data statistics charts and make sure that those statistic are in high impact.
For hourly, 20 minute before the news get prepared, get your chart ready with the currency pair you want to trade. Only trade the pair that have black and white news release and have proper fit correlation with your technical analysis.
Prepare your loosing mentality
In the morning, prepare your SL and compare it with how much money you will loose, also convert your trading profit or loose by its pips.