How Forex Traders Should Start Their Trading Day

Trading is easy with a plan in forex or any other market. Without a plan, you can avoid the possibility of hiring prices

The cost of pursuing occurs when you finally enter the end of a step and you are often caught on a business that takes you back against you.

While any amount of preparation can be prevented from placing you lost business, it is being prepared when you have been mistaken for a simple business idea is not prepared so that you can get out quickly and without Can get out of hesitation. Many experienced businessmen (in fact, including you) firmly believe that the sooner you are less likely to come out of business, the better it will be.

Step 1: Know what the news is and what the market can take

I often look to see an economic calendar that I do not take care of the guard. First of all, I want to see what are major news releases such as an announcement of interest rate, number of inflation, or employment reports or consumer confidence. It allows me to enter a new situation or be ready to manage open business already.

You can take advantage of seeing the news events of the current week and the upcoming week when you have a currency trading like a US dollar before an interest rate announcement, then you should know what type of newsprint can give you your position. Grab or remove from the outside. The important thing to stop is that the news is not being prepared for it by not seeing the calendar for the event and it gets lost in the bad situation which seems to be less appealing due to a new trend.

Step 2: Define which currencies are powerful and which are weak

Many traders have clearly made it clear that the currencies are relatively weak for other currencies and they are relatively strong. A general factor that is relatively strong is the difference in interest rate difference Interest rates are often seen as a great gauge of progress in the form of an economy.

Therefore, with the interest rates near zero, like 2013, a country is considered to be unable to be financially strong like the United States, so that it can catch high-interest rates. However, when the surface of a strong trend of economic data starts and the central bank prompts an increase in interest rates behind a currency, the currency will start strengthening.

An easy way to determine strength and weakness on a relative scale is to draw a chart like a 4-hour or daily chart on a medium-time deadline and apply to a simple moving average. If you think that a currency like a euro is constantly above the average of other average currencies such as the Japanese Yen, US Dollar, British Pound, Australian Dollar, then the Euro will be strong and it can be a risky move to sell And probably would be better to buy.

Many people like the 200-day moving average in the market because the moving average of 200 days is about one year of trading activity.

Step 3: Define the size of your business before you hand

We want to ensure that you know the risks of trading FX and if you have any questions you are welcome to reach out to you. Of course, it is true that there is a risk in every market, but due to the use of leverage, foreigners Currency can be risky compared to other markets. When you do forex trading, using excessive leverage can easily increase the effect on your account of a lost business. Leverage is determined by the size of the business that opens in relation to the balance of your account, therefore, if you have a $ 10,000 trading account and purchased for $ 1,000,000 (yes, this is possible) - USDJPY (American Dollar bought with US Dollar), you will use 20: 1 leverage. One of the best ways to avoid business, which can reduce the account quickly, it is committed to the business that you will open the size.

On 3 things you can clearly prepare Forex to do business as a professional:

1. Important news events are upcoming that can affect your business

2. Are the postures relatively strong and weak

3. When an opportunity arises, what business size will you open?