Ten Steps Before Trading Forex By Abe Cofnas

Ten Steps Before Trading Forex By Abe Cofnas

You should trade forex in an environment that is conducive to trading, not in the middle of your bedroom or family room where other members of the family are interrupting. The workstation should allow easy scanning of the markets. Many traders have multiple
screens. You don’t have to get carried away.

You should trade forex in an environment that is conducive to trading, not in the middle of your bedroom or family room where other members of the family are interrupting. The workstation should allow easy scanning of the markets. Many traders have multiple
screens. You don’t have to get carried away. A two-or-three screen system helps a lot where one screen is for internet-based scanning, email, etc., and the other two screens are devoted to presenting market charts that are used to evaluate price action.

1. GRAB A CUP OF COFFEE, CHECK BANK
REPORTS AND PROFESSIONAL ANALYSIS FOR OVERALL REVIEW

As a forex trader, you can access many daily published reports around the world. Many banks have currency research and release daily commentary. Information portals have developed that enable you to enhance your knowledge. Reading these reports provides a top down look at the world. For the beginner it can bring to light trading opportunities that they would not have noticed otherwise. Reading too many of them, however, is not advisable! The result may be overload and a bit of boredom because they are all very similar. Some good websites that provide excellent professional commentary are:

2. SCAN THE LATEST NEWS ON THE CURRENCIES WITH GOOGLE

Navigating the internet to get the latest news on the U.S. dollar or any currency pair is quite effective. Here is how you do it. Go to http://news.google.com . Then enter a term for the currency. You will obtain the latest news on that currency pair. It will even list the time
the news came out! In just a few minutes you can read what the latest thinking is around the world on any currency pair. You can also set up automatic tracking of the news on the currency pair you like.

3. SCAN WEEKLY AND DAILY CHARTS FOR TREND ANALYSIS AND PATTERNS.

4. SELECT PREVAILING TREND DIRECTION AND TRADE WITH THAT DIRECTION WHEN APRICE SIGNAL OCCURS AND IS CONFIRMED.

5. IDENTIFY THE NEXT BUYING AND SELLING TRADING ZONES

6. ZOOM IN ON PRICE ACTION BY COMPARING THE 30-MINUTE AND 15-MINUTE CHARTS.

Note: Please see Abe’s book “Understanding Forex: Trading to Win” for the remainder of the chapter. Copies can be obtained from the Freebie section of forexhound.com