orex currency trading is a data is released at 7:30 am CST.
zero sum game and those All positions will be closed at
with a trading plan and the the end of class.
necessary discipline to stick to
it will succeed over those that Research and Fundamentals
trade without one. If you want to
be on the positive side of this Each day before trading I will
game start with your trading fill out a trading plan for the
plan – it is your most day. I will also research
important weapon against your fundamental data related to the
opponents. Here is an example of markets before I start trading.
what a Forex Trading Plan This is to get a market feel such
should look like: as overall macro trends, world
events, upcoming economic data. I
Goal will also look into technical
data over the past several days
My goal is to make 20 ticks or to figure out what technical
$200 per day over the 20 day movement has been present.
trading period.
Charts
Market
Candlestick charts are important
My target market is the EUR/USD for day-trading. I will use two
spot market. Trading style is day charts; 5-min and 4 hr. I use the
trading with all trades taking 4 hr charts to identify the major
place between 8:30 am and 11:00 trends and the 5 minute chart to
am on class days. On certain get minor trend timing.
occasions I will attempt to start
trading at 7:20 am due to the Strategy
fact that a majority of economic
Before anything else I need to term trend is bullish or bearish
establish the minor trend.
Although I will look at the 4 hr 2. I will check to see if there
chart to get a broader view of are any key psychological numbers
the market, given the amount of and support/resistance points in
time I have to trade, I feel it the near future
is more important to focus on the
short term trend. If there is 3. If there are none, I will go
consolidation or any other long or short depending on the
non-committal movement on the short term trend
minor trend, then I will stay out
of trading until a trend presents 4. If there are, I will wait
itself. I will use western until the market reaches those
technical analysis (DailyFX numbers to look for a reversal
resistance/support, Moving
Averages) to get a general feel 5. I will trade against the trend
of which direction the market is if I find a candlestick reversal
going and eastern technical pattern with confirmation
analysis to time my entry and (Bullish Engulfing, Hammer,
exit points. Although technical Morning Star, Shooting Star)
analysis is the basis for my
trading, if there is fundamental 6. When trading against the short
information that comes out that term trend, I will set my limit
clearly swings the market against at the 50% fib retracement level
the trend I will go with the
strength of the reaction towards Rules of the Plan
the fundamental data.
1. Never trade during
1. The first step I will take is consolidation
to determine whether the short
2. ALWAYS close out a trade if trade
the MAs cross against a position
6. Get out of a trade before
3. Try to achieve 10 tics on major economic data is released
every trade, 1 lot = 10 tics, 2
lots = 5X2 etc. 7. Don’t make a trade within 10
mins of class ending
4. Stop set at 40 tics
8. Always get out a trade the
5. Momentum should correspond second you think it is going
with short term trend when against you
looking for entry point into a
About the Author:
Jovan Vucetic is the Editor of Margin Strategies which provides Free Forex lessons to traders, as well as Unbiased Reviews of Forex Trading Systems, Brokers and Courses. Download Your Guide To A Winning Trading Plan Today.
Read more articles by:
Jovan Vucetic
Article Source: www.iSnare.com 
