In this post, you can learn 5 important steps to pass to know How to Schedule a Trade on Forex. The analysis is important, But the management is the most important thing. Because you are going to risk your investment.
Some traders looking for How to enter a trade or How to schedule a trade. because they are getting lost again and again. This checklist can be used by any small trader to improve his or her trading accuracy.
How to Start Forex Trading.
We mentioned the main concept for small retail traders, in our dark secret of forex trading post. You can visit the “What should Learn to start forex trading post” to learn about the main important things that every trader must know.
Starting forex trading is not a hard job. You must know the main concept. then should open a demo trading account. After completing a few profitable months with a good trading strategy, you can get into live trading. This is how a fresh trader can start forex.
Related: Forex Trading Apps
Pick a currency pair to trade Forex.
Many experienced traders do trade on any major or minor currency pair. Most of the time, Forex mentors do advise just analyzing the major pair for the new traders.
You can pick up any currency pair that you can analyze all Fundamental, Trader sentiment, and technical. Go ahead to learn How to Enter a Trade in Forex Using All Analysis with management techniques.
If you are really happy with trading only using the Technical, then you can go for a currency strength indicator according to your strategy.
The Commitment of Traders report is the best indicator that can be used to confirm whether our currency pairs are good or bad to trade. This is our Personal opinion. If you need to become a successful trader, then you must follow these steps too.
We suggest you add all these checklists to your trading journal. we do it every single time when we trade.
Fundamental analysis.
Understand the economic and Macroeconomic situation of both currencies that you will trade using the fundamental analysis. I am pretty sure now you know How to analyze the fundamentals of Forex with our blog section.
Go to the central bank main website of any of your favorite currency pairs. Read monetary policy reports and try to understand what are they going to do in the near future.
If you do trade on Eur/USD, then go for both the European Central Bank and Federal Reserve USA central bank. See this graph to understand what we are going to explain here.
| European Central bank. | Federal Reserve USA |
Read and understand Monetary Policy. See the next Economic event on the Calendar. Compare news releases and Monetary policy reports. | Read and understand Monetary Policy. See the next Economic event on the Calendar. Compare news releases and Monetary policy reports. |
By doing an Analysis of the Fundamentals of both currencies, you can understand who will perform well and in which direction.
Related: How to Fundamental analysis of Forex.
Trader Sentiment Analysis using COT data.
Analyze the Commitment of Traders reports and look at what the big players are doing. Analyzing the COT data we can confirm that we do buy or sell that particular currency pair.
According to the Example, You can use the Eur/USD currency pair in our COT formula to confirm the trade.
COT Formula for Buy Euro vs USD currency pair.
Condition for Buy Eur/USD.
non-commercial traders increasing the long positions and decreasing the short positions of the Euro and Non-commercial traders decreasing the long positions and increasing the long positions of USD, you can go for a Buy the Euro to USD.
Conditions for Sell Eur/USD.
non-commercial traders increasing the long positions and decreasing the short positions of USD and Non-commercial traders decreasing the long positions and increasing the long positions of EUR, you can go for a Buy the Euro to USD.
Related: How to Analyze the Sentiment of Forex
Technical analysis.
Technical Analysis gives you the best market price to buy or sell currency pairs.
For Example,
If you need to buy, wait for the market to come to a support level. Or if you want to sell a currency, you have to wait for the market price near the resistance zone.
Related How to do Technical Analysis.
Risk Reward.
The risk-reward is the most important thing that many losing trades wouldn’t do. Always have to target at least a 1:2 risk-reward ratio. In our Strategies, we go from 1:2 to 1:20
If you are risking 1%, then you have to choose an entry point that can give you at least 2% of the profit from that particular trade.
Money Management.
Many Forex mentors advise just to risk 1% of your capital. But the bad truth is most new traders do not have big capital in their accounts. You have to manage your capital according to your winning percentage. If you have a 50% winning percentage, you can go for 10% of risk per trade.
How and when to enter and exit from the trade.
If you did all types of analysis, you know the best place to enter a trade. You can get an idea to enter and exit using the support and resistance, candlesticks pattern, or chart patterns.
It does not matter if you are a scalper, day trader, swing, or position trader. You can use this technique as any type of trader.
Forex Trading Plan checklist.
Every trader should include Fundamental, Trader sentiment, and technical analysis. But those are not all. Managing risk and capital are more important. If you need to place a good trade, then you must use a good stop-loss technique too.
The Final Note of How to Schedule a Trade.
Forex trading is a real business. You must pass all steps to become a successful trader placing good trades in your account.
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