Diving into the financial market considers a daily trading routine and specific actions to take on a daily basis. You should not expect trading to be a walk in the park. Being successful across various financial markets means having a transparent approach as well as instrumentations and principles to support that approach via crucial daily activities every beginner trader should perform.
In today's article, we will describe some of the key actions every novice trader should take as a part of his or her Forex trader daily routine.
1. News Monitoring
The same way we wash up and have breakfast every morning, traders are supposed to check the latest news, as markets are drastically affected by them. News can result in huge trend crashes or boosts (example: a huge market dropdown taking place in March 2020 featuring S&P losing 35$ in just a few weeks).
It is very important to keep up with all market insights as well as the part of your daily trading routine, as it results in prompt reaction and accurate decision-making taking into account major events and the way they can affect the market. Here is a short guideline:
- Check the news in accordance with your time zone, data, and other compatible parameters.
- Apply parameters and look for a preferred asset (stocks, currency pairs, commodities).
- Consider the news and decide on whether to enter the market with a trade or skip.
2. Identify Trends
While performing a daily trading routine, you will also need to keep up with the trend while identifying the price, direction, and rules:
- An uptrend – a market with higher highs and higher lows.
- A downtrend – a market with lower highs and lower lows.
To perform this particular activity, you will need to use charts that depict the price movement alongside price highs and lows that help to identify the trend and decide on the next action as well as preferable timeframe or whether you should go long or short. Always keep in mind that “a trend is a trader’s friend”.
3. Define Key Levels
This particular action will let you boost profit. All you have to do within the Forex trader daily routine is to detect key levels which are actually the currency pair boundaries helping you overview and explore the price action.
Open the chart and complete the following steps:
- Detect the price highs and lows as well as levels that make the price react.
- Use these points to plot a horizontal line.
- Configure tighter timeframes and repeat the two previous steps.
- Analyze the results and decide on whether to buy or sell.
The trading journey can be even more exciting, as your level grows. Later, you can apply a set of various trading strategies and techniques to try out various approaches.