3 Things You Should Include In Your Daily Routine As A Forex Trader

 3 Things You Should Include In Your Daily Routine As A Forex Trader

If you trade the forex markets every single day, you will soon find yourself getting into some kind of routine. I know I did when I used to trade the markets all day long. Nowadays I make time for other things as well, but I still incorporate the same kind of things into my daily routine.

There are three things in particular that I will always try to do at the start of the day, and they are as follows:

1. Check the overnight price action and monitor any open trades
The good thing about trading the 4 hour charts, and using one of my favourite trading methods, is that you don't need to be screen-watching all day long. You can just set your stop loss and your target exit point and let the trade unwind, leaving it to run overnight if necessary.

For that reason it is always important to check the overnight price action when you first switch on your computer in the morning, and monitor any open positions. The overnight price action can often influence your trading plan for the coming day, and you may want to adjust your stop loss and exit point if necessary.

2. Check the long-term trends

Before you start trading, it is always a good idea to take a look at the long-term trends for the various currency pairs that you like to trade. This should give you an idea of which way you should be looking to trade on the shorter time frames.

For example if you are trading the 4 hour chart, then it is always a good idea to look at the price action on the daily chart, identify the current trend and possibly look at some key support and resistance levels.

3. Check which economic data releases are scheduled for the coming day

It is always vitally important that you are aware of any economic data releases that are scheduled for the forthcoming trading day because these can potentially ruin any of your trades in an instant.

The markets don't care about technical patterns, or even support and resistance levels, when a key piece of economic data is released. They simply react to the news, and subsequently there can be some wild swings as a result. In general you don't usually want to have any positions open around the time of one of the more important data announcements.

You can check the economic calendar, which includes the time (and importance) of each data release at Forexpros.com
ForexMarket4you.com

Once you have done these three things, you are good to go. Just make sure that you take a few breaks during the day, and try to get some exercise because sitting at your desk staring at a computer screen all day long is not good for your health.

Source : TheForexArticles

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A Volatile Market: A Blessing or A Curse?

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Volatility is the main feature of the Forex market where trading takes place non- stop throughout the week except for the weekend. It is by far the biggest market on earth and is bigger than all the other markets combined. The daily turnover of the market stands at a figure exceeding four trillion dollars and this will give you an idea as to its trading volume.

This highly volatile market is the arena where millions of traders and investors risk their money in the hope of making a profit. If there was no volatility there would be no trading. In this sense it is truly a blessing that many traders capitalize on. Volatility is brought about by markets that trade erratically swinging between highs and lows. Where there is no market movement in currency prices you will see no volatility and thus no trading will take place in such an environment.

It is fact that the volatility in currency trading moves by pips and a closer look will tell you that this movement is indeed extremely small. This is why leverage is considered as necessary by currency traders, as well as signals. In a highly volatile market losses can be augmented by leverage and at times like this it is best to trade lesser amounts so that losses are also kept to a minimum.

Although a volatile market can be a blessing you should control your trading in such a market. This is easily by using tighter stops so that losses are cut off at the outset. The exact placing of the stop will depend upon the currency pair being traded. Volatile market conditions often tempt traders to invest more than normal in the hope of collecting profits. However, this can be dangerous as the risk faced in a volatile market is higher than at other times. A trader should stick to his planned trading at all times and during times of extreme volatility this is even more essential.

Keeping up with fundamental indicators and news in general will ensure that you know the cause for the high volatility in the Forex market. This knowledge will help you to make better trade decisions in the longer run as you face volatility in the market. When you trade carefully adjusting leverage so as to reduce any potential losses you can still win in a volatile market.

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Automated Trading

Today the high popularity of Forex is mainly caused by the fact that you can trade having a computer and Internet access, you do not need to invest large sums in order to start trading on the market, and also trader can use the advisors for automated trading.
People, who have just started their work at Forex, very often do not have the required experience and knowledge in order to begin trading themselves. That is why about 70% of traders use the automated trading – advisors. The usage of the automatic trading system helps to avoid the influence of the human emotions, panic, excitement, etc. on the trade process. The advisors are developed on the basis of long experience of the successful traders and professional analysts. However, even the programs of automated trading can not guarantee 100% profit; nevertheless, due to them you start trading at Forex market, having minimum of knowledge and experience in this area.
What is the Automated Trading, as known as the trading with the help of expert advisors?
Advisors are the special programs, including different modules, which are used when the charts, indices, received from the broker to trader, are processed and analyzed.
The programs of the Automated Trading were developed and are used by traders in trading for a long time, and every year the number of such programs grows, a lot of them are updated and become more perfect in the work. The trading with modern expert advisors allows to receive profit as well as to get familiar with Forex market and acquire skills and knowledge, which are needed in order to trade successfully.
The major part of advisors, provided by different companies for the automated trading, as a rule, does not require special skills to start work with them. You just need to download them and install, that is all, you can start trading, which very often gives a result immediately.
Most often the automated trading systems are provided for free, with the detailed description of program’s functions, but sometimes this description does not correspond to its real possibilities. That is why despite all advantages of advisors, you should not rely on them completely. Traders, who have enough experience and know much about trading strategies, start trading independently, guessing the movements of exchange rates on short time intervals.

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