Most beginner traders are confused and don’t know what to do when opening a chart. Some just saw and immediately opened a position, some didn’t see the chart and went straight open a position with a trap system. Remember forex trading is not a gamble, this is pure analysis, which is equipped with two possibilities with clear rules.
I think everyone has done it .😂😂😂. Actually all of them have S.O.P. everything is in order. This time I will share info about how or what to do when entering market.
1.Determine what type of trader you are
There are many types of traders, such as scalpers, daily traders, swing traders and long term traders.
Scalpers are traders with fast execution but can open positions multiple times in a short period of time. The lot size used is usually large and the profit taking is not too far away. Usually 10 – 30 pips
Daily traders are traders who open positions and close them in a range of one to two days
Swing trader is a trader who opens a position and closes it in the range of one to two weeks or even one month
Long term trader is a trader who opens positions for a long period of time in the range of months and even years
2.Make a trading plan and be disciplined in implementing it
Trading plan is very important for a trader. By creating a trading plan we can know which direction we are going, what will we do if we are in a wrong position, how much money will be we use and many more. Make rules that we can do and remember to be disciplined in implementing them
3. Market analysis
I will give a few tips on chart analysis.
Start by opening a monthly chart, because a bigger time frame is easier to analyze
Then look at the trend, up or down.
If the trend is up, check the weekly time frame. If the weekly time frame the trend also goes up, continue to the daily time frame
If the daily time frame also indicates the price will go up, then open the H1 time frame at least to find the right time to buy … In market execution, don’t be in a hurry. Look for the right time and use money management.
Especially for scalpers, it’s better to analyze the trend on the H4 time frame and execute it on the M5 – M15 time frame
Good luck 👍👍👍