Trade Plan
- Before trading, understand the market sentiment and how the economy of each country is going (fundamentals) - Bloomberg radio for market sentiment and fundamentals and Bloomberg videos for news (Keep a market mentality). (Correct, consider the situation of bank of England and US tax reform) find high alert news that could change the currency and research the effects.
- Create a thesis (analysis) on my findings, using babypip’s forums to gather other people’s opinions and internet sources such as Forexfactory, babypips, fxstreet and dailyfx.
- Look at potential economic indicators and trading singals that could affect future prices, make bullish or bearish outlooks then decide high probability trades and good risk/reward ratio trades having a bearish or bullish outlook.
- Trade on good or bad market sentiment indicators from news; decide which currency pair or other tradeables that have high volatility.
- Look at W1 – Figure out how the sentiment or fundamentals have affected the price action on the market and what market phase exist (Accumulation, Advancing, Distribution and Declining). Find support and resistance to further expand on good entry points.
- Narrow down to D1 – overview of technical analysis
- Narrow down to H1 – Deeper technical analysis
- Narrow down to M10 – Find entry, T/P, S/L and exit points that matches and links with the overview and deeper technical analysis I made on D1 & H1 and search for high probability trade + good risk/reward ratio.
- Setup my market entry points considering the information I have gathered.
- On Sunday create a trade plan based on my findings and execute the plan from the market sentiment, fundamentals and technical analysis.