1. Check Forex Factory for NEWS & REPORTS + get a “read” on Futures / Oil / Gold
2. Check & Confirm
TRADE SETTINGS for Lot Size (0.1 Per $1,000 Account Balance) Remember 1.0 Lots = $100K Lot at $10 per pip trading. 0.1 Lots = $10k Lot at $1 per pip trading. You want 0.1 Lots per $1,000 in your account to be within the 3% rule at 500:1 leverage.
Currency Traded (set “Symbol by default” in Tools / Options to Last Used) .. Deviation to 3 pips.
Check ACCOUNT being traded! Demo vs LIVE (don’t trade LIVE thinking you’re in DEMO!)
Pre-Set Stop & Limit settings are at 25 (type it in) for STOP and 10 or 15 for LIMIT.
3. Do “Top Down Chart Analysis” using the WEEK / DAY / 4 Hour Charts. What is the LOWEST chart out of these that shows the CURRENT TREND?
4. Do a 1 min / 5 min / 15 min Chart Analysis – which of these AGREES with the Higher Chart Trend?
5. The LOWEST CHART that shows a TREND from 1 Hour / 4 Hour / Day will be your “Overall Direction” for the session. This will be the likely “Momentum Move” that may suddenly occur during your trading session. WATCH FOR ANY TRADE you take AGAINST the Trend if you are “Range Trading” while waiting for the “Move” to continue, being ready to cut and run!
6. Will there be OTHER MARKETS opening or closing during your trade session? WHEN? (See World Market Hours complete listing)
FINANCIAL DAY starts with Wellington at 2pm Pacific. Asia OPENS at 4pm Forex education. Europe OPENS at 11pm Pacific. London OPENS at Midnight Pacific. Tokyo CLOSES at 1am Pacific. Hong Kong CLOSES at 2am Pacific. New York OPENS at 5am Pacific. Europe CLOSES at 8am Pacific. London CLOSES at 9am Pacific. New York CLOSES at 2pm Pacific.
7. Markets tend to “move” at Opens / Closes and at 15 Min / 30 Min / 45 Min / Top Of Hour times.
8. CHECK UP FROM YOUR NECK UP — did you sit down today to trade … or to FIND trades worth taking? Never sit down “to trade”. That’s taking the “video game” approach to your money. Are you fresh? Attitude set to “Trade To WIN” not “Trade and try not to lose too much this time”. Do you have the time to trade and be focused now? Don’t trade if it doesn’t feel good to be here now. Do trade if you’re on your game and it does feel good to be here now.
9. Don’t try to pick the Tops and Bottoms of moves just because it “moved” and then “stalled”. Always use your chart analysis and when it is moving — TRADE THAT DIRECTION. If it STALLS and starts to RETRACE, don’t assume that’s the Reversal Point (also known as a top or bottom). It may just be a short breather in the move and catch you trading in the wrong direction.
If it is “ranging” (stalled and moving up and down in a fairly short range from top to bottom of 10 to 30 pips) your charts will show that on the 1 – 5 – 15 min charts and you can trade the RANGE which is NOT the same as trying to pick a Top or Bottom of a bigger move. KNOW THE DIFFERENCE. Be prepared for when it BREAKS THE RANGE (called a Break Out).
10. Remember —- WATCHING and sitting on your hands is also trading.