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. See our updated Privacy Policy here.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • $EURUSD too clean for comfort, esp with #NFP on the horizon
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.70%, while traders in France 40 are at opposite extremes with 79.47%. See the summary chart below and full details and charts on DailyFX:
  • The primary point of worry for the FOMC is labor and tomorrow brings the July NFP report out of the United States. Get your market update from @JStanleyFX here:
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.01% Gold: -0.32% Silver: -0.47% View the performance of all markets via
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.39% 🇦🇺AUD: 0.38% 🇬🇧GBP: 0.29% 🇪🇺EUR: 0.03% 🇨🇭CHF: 0.00% 🇯🇵JPY: -0.22% View the performance of all markets via
  • US Dollar Pre-NFP Price Action Setups: EUR/USD, GBP/USD, USD/CAD
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.55% US 500: 0.44% FTSE 100: 0.03% Germany 30: 0.01% France 40: -0.05% View the performance of all markets via
  • Heads Up:🇷🇺 Inflation Rate YoY (JUL) due at 16:00 GMT (15min) Expected: 6.6% Previous: 6.5%
  • The price of crude oil is generally sensitive to rising tensions in the Middle East and might have been expected to have strengthened on the current hostilities in the region.Get your #crude oil market update from @MartinSEssex here:
  • Ascending wedge, price support in view. Quantitative evidence is supportive of bullish view. Get your market update from @PaulRobinsonFX here:
The Formula: Analysis + Execution

The Formula: Analysis + Execution

Jay Norris, Head Forex Trading Instructor

Market analysis is the application of a carefully orchestrated, proven trading method, and from there, well-rounded traders must add in execution to complete a winning formula.

Not everyone is suited for both creating a viable plan and then executing it. This is why most companies have different teams for different functions, such as a design department, which would come up with future products, and a business development team, often tasked with finding distribution partners. Different aspects of a business plan take different skills: a plan without execution—or vice versa—is no good without luck…and professionals do not rely on luck.

The same is true in your trading, except you don’t have the luxury of having one department design your trading plan and another execute it. You need to come up with a trading plan that not only covers market analysis and trade selection, but also execution, including trade entry and management. A self-guided trader needs to handle both of these diverse tasks simultaneously.

Building a Proper Trading Plan

When learning to trade, most realize quickly that they need a solid methodology and trading plan before they ever take action in a live account. They also quickly learn how risk-averse they are (or are not). In general, more risk-averse is better until you’re certain you have a trading plan that works in both trending and counter-trending markets.

While I generally prefer acting to planning in most other aspects of life, I favor planning ahead of acting in trading. I make sure I am well prepared before pulling the trigger on a trade. I always know how all the tradable patterns are aligned in the markets I watch, so I know ahead of time which market and which direction I plan on trading.

By knowing how the individual markets are aligned in the context of the macro picture, it’s then just a matter of waiting on set-ups to buy dips or sell rallies. Because I’ve already spent many years honing my trading plan and studying the method I follow through multiple economic environments and business cycles, I can spend the majority of time executing trades. That has not always been the case, though. It took many long hours of observation and analysis before I had a trading plan that I was comfortable acting on in live markets.

Setting Your Benchmark

The best market analysis is generally provided by a trading method that is straightforward and simple, but the bottom line is that it must be effective. And the way to measure its effectiveness is not just to demo trade it in live markets and through different economic environments, but to also document on a spreadsheet the specific signals and exits it produces. This way you have two records of trades: the spreadsheet, which will be a benchmark for your method; and your demo trading track record, which will be a reflection of your ability to adhere to your method/trading plan.

I favor a method that provides objective output based only on market-generated information like price. This means every trading decision is based on the market’s opening price, and the high, low, and closing prices of the bars or candlesticks on a chart. Those four inputs encapsulate how a market has priced itself in all environments to that point in time. The chart, and not your opinion or that of a pundit, is going to give the best measurement of the current environment. To me, there is no doubt that a market’s current price pattern is as accurate a reflection of fundamentals as you will find.

Overcoming a Common Misconception

I’ve heard it said that you need a method that suits your personality, although my colleagues at Trading University and I disagree with that. While all traders experience ups and downs, it is unlikely we could ever coordinate who we are with a method that can keep up with the market's gyrations. However, if we understand that the underlying structure of the marketplace is chaotic, and that we've been raised to behave in a steady, reliable manner, it becomes apparent why market movement seems to confound most newcomers.

Our mindset and the market’s underlying structure are definitely at odds. In fact, you are likely going to need a method that is not aligned with how you think! Once you start to grasp this conflict between how you were raised to think and behave, and how price action behaves, you start to see why trading psychology is such an important subject.

By following a viable method, and by taking every signal that it generates in up, down, and sideways markets, you are going to be asking yourself to do the opposite of what you think, which is a tall order. It is extremely important that you decide now that it is not the individual making the decision to buy or sell, but the method they are using.

Effective traders are not in the business of making predictions. Your first priority is to be an analyst who does what the market and the method tells you to do. Once you embrace that, trading can become an art form!

By Jay Norris, author, The Secret to Trading Forex: Risk Tolerance Threshold Theory

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