If you watched my last update here at BabyPips.com, you should now know the “7 Questions to Ask Before you Enter a Trade.” If thinking is the process of asking and answering questions, you better make ’em good questions, right? Today, I bring you an update about what comes next.
Ultimately, every forex trade needs a what (what are you trading?), how (how are you trading it?) and when (when are you trading it?), and it’s your analysis that will answer those questions. I’m a Charthacker. There were no currency trading terms that adequately describes “what is it that you do?” you ask…
I hack the charts. I watch the technicals, the price action, and fundamentals. I track the economic events, support/resistance, and price movement ranges. I monitor the market trends. I respect all Three Avenues of Analysis.
The Queen is a Charthacker. And you should be too.
Ignoring the news and fundamentals will not allow you to properly prepare for high impact economic events. Ignoring price movement ranges will not allow you to properly gauge the increase in volatility. Ignoring key support and resistance levels will not allow you to properly position yourself in (or out!) of the market.
It’s all connected. And before you think, “Sure Queen, you’ve been at this for two-and-a-half decades–easy for you to do!” I say it’s actually easier to watch all this. Much like a bunch of ingredients on your counter, when the cake emerges out of the oven, the lightbulb comes on and we say, “Oh!” Flour, eggs vanilla, baking powder, milk; it could combine into a number of things. But once it’s a cake–when you put everything together–it makes sense!
(Perhaps I am little hungry as I write this. I am on a juice fast.)
So, here is this week’s playback. Questions, comments, requests, leave them here at the blog!
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This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.