Good habits in Trading

With the start of a new year I thought I’d continue with the theme on good habits for trading. This week I’m looking at good, general, investing advise.

Set Clear Goals:
Define your financial goals and trading objectives for the new year. Whether it’s capital growth, risk management, or skill improvement, having clear goals provides a roadmap for your trading journey.

Create a Trading Plan:
Develop a comprehensive trading plan that outlines your trading strategy, risk tolerance, entry and exit criteria, and money management rules. A well-thought-out plan helps you stay disciplined and focused during market fluctuations.

Review and Reflect on Past Performance:
Analyse your trading performance from the previous year. Identify strengths and weaknesses, successful strategies, and areas for improvement. Use this reflection to adjust your approach in the coming year.

Educate Yourself:
Stay updated on market trends, economic indicators, and geopolitical events. Continuous learning is essential for adapting to evolving market conditions. Attend webinars, read market analyses, and stay informed about global economic news.

Risk Management:
Clearly define your risk tolerance and set appropriate risk-reward ratios for your trades. Implement risk management tools like stop-loss orders to protect your capital. Consider position sizing based on your risk tolerance.

Diversification:
Diversify your trading portfolio to spread risk across different currency pairs or asset classes. Avoid overconcentration in a single trade or currency.

Stay Disciplined:
Stick to your trading plan and avoid making impulsive decisions based on emotions. Discipline is crucial for consistent success in the forex market.

Use Technology Wisely:
Leverage trading tools and platforms to enhance your analysis and execution. Explore technical indicators, charting tools, and automation features that align with your trading strategy.

Keep a Trading Journal:
Maintain a detailed trading journal to record your trades, decisions, and emotions. Regularly review your journal to identify patterns, assess your performance, and make informed adjustments to your strategy.

Monitor Economic Calendar:
Stay aware of key economic events and announcements that can impact the forex market. Use an economic calendar to schedule your trading activities around significant releases.

Adaptability:
Be flexible and willing to adapt your strategy based on changing market conditions. The forex market is dynamic, and the ability to adjust to new trends and information is crucial.

Regularly Reassess and Adjust:
Periodically reassess your trading plan and adjust it if needed. Market conditions, your financial situation, and your risk tolerance may change, so your trading plan should evolve accordingly.

Network with Other Traders:
Engage with other traders, either through forums, social media, or local trading groups. Sharing insights and experiences with fellow traders can provide valuable perspectives.

Let’s look at some key charts
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DXY chart:
Looks to be in a range now. I’ll discuss more on Tuesday.

Gold:
Looks to have found support at the 2000 level.


Oil;

Still at a big area.

Bitcoin:
Looks to have found support at the 40000 level. I’m targeting the 50k level.

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You can also follow us on Twitter https://twitter.com/marcwalton

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Red flag news:
Inflation news form the states on Thursday (GMT +3 below)

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MAJORS

EUR/USD: A grade long at 1.0800. On the shorter timeframes I’d look to long from 1.0850

USD/CHF: Looking to short from around 0.900. You could start looking at 0.8920

GBP/USD: Long from 1.2500

AUD/USD: Looking to long from 0.6630

NZD/USD: I’m looking at 0.6140 to long

USD/CAD: Hit my target perfectly. Looking at 1.3450 to short

USD/JPY: Could look to short if it breaks below 143.00


CROSSES

EUR/GBP: Looking at current position to short. (see video)

EUR/CAD: Stuck between EMA’s. (see video)

AUD/CAD: Long from 0.8900

GBP/AUD: Looking to short from 1.9200

GBP/CAD: Looking to long from current position. 1.6900 level.

GBP/CHF: See video for an update on the pattern we have been following.

AUD/NZD: Looking to short from 1.0790. If it breaks higher, I’d look to long  (see video)

As always, remember correlation! -Especially when taking more than one JPY trade!

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M3 -Shorter timeframes.

I do my analysis on daily and weekly charts first and make a note of the MAJOR areas of support and resistance. Then copy them onto Pierre’s Earth and sky template. Then I make a note of the weekly & monthly pivots points and add them to the charts. You will see lots of opportunities line up during the week. The important thing then is to select a bias for the next few days and do NOT take trades if the price is too near a trend line or pivot. Ideally, you want to buy when the price is near a major support and or pivot point line and has the potential to make at least 40 pips. Vice versa for a short.

New members, please note: If I am looking to take a trade long, for example, 1.5000, I place my order 10 pips above & 10 pips below for a short. This is because price often does not quite reach a major line and you need to allow for spreads.

We are NOT a “tipping service” our aim is to teach you how to trade for yourself. Watch the video below for more detailed explanations of this week’s analysis and trade plan (click the 4 arrows bottom right to view full-screen.

Regards
Thinus