I start my day by reading news about major financial instruments, of course that’s after usual morning routine. Particularly, I use investing.com and forex factory to track market news. I put together interesting information to consider within the day, and sometimes for the whole week. For instance, today 20th Feb 2025, I read about oil price dip as a result of US crude inventories jump. This information is important because it may likely have a positive impact on the US dollar, of course we have to consider other influential factors. Interesting markets to consider in this case are US pairs, those of us who love trading commodities can also check gold and crude oil.
Remember not to base your analysis on only one factor. You must also look at the technical aspect. Gold price hit a record high of $2,947.23. Like always when an asset hits a record high it draws back. We are like to see a fall in gold price in comings days. Technically gold can retrace back to $2747 before it skyrockets again.
Some Trading Tips for the day
- Education and Training
a. Learn the basics of Currency pairs, leverage, market analysis.
b. Know your technical analysis: Charts, patterns, technical indicators.
c. Be rightly informed and up to date with: Market news, trends, analysis. - Trading Strategy and Planning
a. Create a trading plan: Goals, risk tolerance, entry/exit strategies.
b. Choose a strategy: Day trading, swing trading, position trading.
c. Be realistic: Don’t expect to get rich quick; aim for steady, moderate returns. - Risk Management
a. Use risk management: Stop loss, position size, don’t over leverage.
b. Spread risk across multiple currency pairs and strategies.
c. Review your trades and adjust your strategy. - Emotional Control and Discipline
a. Control your emotions: Don’t make impulsive decisions based on fear, greed or excitement.
b. Stay disciplined: Stick to your plan and don’t deviate no matter what.
c. Take breaks: Step away from trading to clear your head when you lose 2-3 traders in a roll.