Sunday, June 29, 2008

Plan your forex trades

Here is some idea where you can start your trading day with a confidence decision.

Daily Trade Planning

  1. Look into the big picture – Monthly & Weekly time frames
  2. Look into detail – 5 minutes to daily time frames
  3. Check support/resistance level – Bollinger Bands & Price History
  4. Check fundamental factors (Economic Calendar) – To avoid unnecessary volatile movement that defies the technical analysis i.e. non-farm payrolls, interest rates, CPI, etc.
  5. Dividing 24 hours time into 6 sections using the 4 hourly charts – Avoid rollover fees and make sure one day trade must end in one day.
  6. Be patience – setup at the right position
  7. Use little of your instinct and confidence based on the technical indicators situation
  8. Decide your trade.

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