Pre-Trade Routines That Will Increase Your Profitability
Ordered execution is only one part of trading. As a result, the decision-making process takes longer than the time spent on order execution because the outcome of your trade is dependent on it. It’s the same as utilizing a powerful trading platform like MetaTrader 4 with no understanding of how it works. Because you don’t know how to manage it, you wind up squandering its full potential.
A sound choice can only be reached after all relevant information has been thoroughly examined and analyzed. Be aware that most failures are caused by hurried decisions made based on the limited knowledge you have. It’s important to have the right information. As a result, prior to making a trading decision in the Forex market, traders should perform the following pre-routine processes.
Observe Technical Trends
Long-term levels of importance in Forex trading include trendlines, support and resistance zones, and other technical indicators. Your best friend in Forex can be the trends you see. Your trading career could come to an end at any time when you reach these levels.
Focusing on short-term charts has the drawback of making you insensitive to longer-term trends. Once the market gets on you, you begin to appreciate its value. Avoiding mistakes and regrets is preferable to making them. Before making any major decisions, it’s a good idea to check in with your weekly and daily time frames as frequently as possible. Aside from that, you should make studying the long-term chart a weekend ritual.
Monitor Latest Economic Data On A Daily Basis
The events of the day, such as news reports and economic data, are the driving force behind the day-to-day movement of the market. As a technical trader, you need to pay attention to these things because they can affect your short-term status. Most traders are ignoring the news release in favor of focusing on their charts.
Checking the economic calendar is an excellent way to begin your day. Take a look at it before you get involved in a trade. Get into the habit of doing so. Using an economic news indicator in your MetaTrader 4 account might be extremely beneficial if you are unable to do so consistently. As a result, you can stay up to date wherever you are.
Observing The Short-Term Price Action
Regardless of whether you’re a short-term trader, long-term trader, or even a scalper, you must not ignore short-term price activity. You must keep up to date on the price movements you’re interested in. It gives a long-term trend shift at a high rate.
Keeping an eye on the short-term support and resistance levels will also help you enter the market more effectively. Short-term resistance is not a good place to enter the market long-term. Keep in mind the importance of short-term levels because they generate immediate profits that allow you to make better decisions.