News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • The US Dollar lost ground to most ASEAN currencies as Emerging Market assets climbed despite US economic woes. USD/INR is eyeing third-quarter Indian GDP at the end of the week. Get your market update from @ddubrovskyFX here:https://t.co/urDN2b5Nwd https://t.co/MJN9UYUbmz
  • How does stock market liquidity benefit its traders? Learn more here. https://t.co/FWKyIDUwAw https://t.co/cye72bUV4e
  • BoK Governor Lee says Yellen a rational pick for Fed, would be positive for markets - BBG
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.39% Silver: 0.27% Gold: 0.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/NeCekjNnTU
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.16% 🇨🇭CHF: 0.13% 🇨🇦CAD: 0.09% 🇦🇺AUD: 0.04% 🇬🇧GBP: 0.03% 🇳🇿NZD: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/KLzNspAZRP
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 94.25%, while traders in NZD/USD are at opposite extremes with 75.59%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/6Y0Ouk5KIq
  • All my Google autocompletes are now Thanksgiving related. This is making for some interesting suggested searches
  • Bok Governor Lee says action will be taken if herd behavior seen in FX market - BBG $KRWUSD
  • New Zealand Prime Minister Ardern says rising home prices not a plan for growth - BBG
  • Wall Street Futures Update: Dow Jones (+0.214%) S&P 500 (+0.262%) Nasdaq 100 (+0.440%) [delayed] -BBG
Finding a Trade is a Two Step Process

Finding a Trade is a Two Step Process

2010-04-19 13:10:00
Thomas Long, Course Instructor
Share:

However, quite often they will lose those gains as just quickly.  They don’t do anything differently and will come to us for some sort of insight.  The reason is usually the same in that they forget to first identify the mood of the market before finding their trade.  What I mean by that is to first identify the direction of the trend on the daily chart and then to find your trade.  If the daily trend is up, then only look for buys and if the daily trend is down, then only look for sells.  If the daily chart shows a range bound market, then look to buy above support and sell below resistance.  If you are not sure of the trend, then the play is to move onto another currency pair where the trend seems obvious.  

I've seen many traders buy the pullbacks on a currency pair that is in a strong uptrend and enjoy tremendous success.  Then when the trend stalls out or changes, they continue to buy and may lose all of those gains.  Being on the right side of a trending move can result in some great trades while trading against the trend can lead to many quick losses.  A good way to see if this may be one of your problems is to run a report on your FX Trading Station to see all of the trades you have made.  Then take a look at the daily chart and note where you entered into the trade.  Now ask yourself how your results would have been if you had only traded in the markets where you could confidently identify the trend.  You may find that adding this simple first step of identifying and trading with the daily trend increases your chance of success.

two step 041910

 

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES