Here are the Steps to Do While on Forex Chart
Being a forex trader is a lot to be learned before you go directly to the forex market. Some articles that we write on this website can lead you to become a trader with enough knowledge. This article, we’ll discuss what steps to take when you’re ahead of the chart.
When starting your trading using a platform provided by forex brokers and perform price movement analysis before taking a trading decision. And the simplest analysis is technical analysis using charts in the forex trading platform.
The following steps to do when in front of the chart:
- Select the pair to trade and open the chart
- Identify trends on charts with big timeframes like Monthly (MN), Weekly (W1), Daily (D1) and Four Hours (H4)
- Identify also the support and resistance levels in the above mentioned timeframe (with this you can get stop and target levels)
- Identify possible price patterns formed in large timeframes (repetitive patterns)
- Use your trading system to make trading decisions
- Conduct risk management and financial management to manage existing trading positions on the market (including cut loss if necessary to limit losses)
Trading is not seeking perfection results but trading is an opportunity, risk management, financial and emotional psychology. Trading must also go through a process so that a trader must gain a lot of experience from the process.
Studying risk and financial management is necessary before you enter the market. You also have to remember that you can not control the market so that when there is a movement in the opposite direction of your trading position in the market, then you must be prepared with risk management such as cut loss (stop loss), switch, hedge and others.
Money management is done before you enter the market because of the amount of risk you can accept, the number of lots, the level of stop and target levels. Even the selection of leverage and account type is also tailored to your capital money capability. This is determined before you open an account and deposit.
Well that’s the big picture when you are trading and are in front of the chart.