Trade with the
trend, and look at the M15 and higher charts for trend direction.
Know what the trends are doing on the H1 and H4. Never trade against
the trend of the M15. The exception is to scalp quickly with the
retracement s of the M15 using the M1 and M5.
1. If you prefer to
trade using the smaller time frames (M1, M5), trade with the overall
trend. These are micro trends. If you are a scalper, grab a few pips
and close trades fast.
2. Use the human eye
to detect trend changes in the smaller time frames before taking
trades on the longer time frames. For example, if you trade the 15
minute chart, look at the 5 minute chart to see if the trend is
strong or changing. If you trade the H1 or H4 charts, for example,
look at the M5 or M15 prior to entering the trade to see any possible
trend changes.
3. Repeat to
yourself about the trend: “The winner keeps winning and the loser
keeps losing.” Trade with the trend.
4. Look at the time
prior to entering a trade. For example, if it is 9:25 p.m., it may be
wise to wait until 9:30 or 9:35 to see if the trend changes. If you
trade during the day, retracements usually occur a few minutes after
10 a.m., 1 p.m., 2 p.m., 3:00 p.m. The ‘7’ rule. Notice at 1:07
p.m., 2:07 p.m. what we are referring to. This ‘7’ is our
observation and not a fact. And retracements/reversals often occur
around the :45, :00, :30 and :15.
5. The market is
quiet from 4 p.m. until around 7 p.m. This quiet time is not a good
time to trade since the market is choppy. Wait until 7 p.m. The trend
usually retraces a few minutes after 7 p.m. Be careful...the market
usually turns back into the day’s main direction after the
retracement. The trend then usually reverses in the opposite
direction, which means the day’s ‘winner’ becomes th ‘loser.’
6. Do not be greedy.
Take profits and be grateful. Do not overtrade.
7. Always use a stop
loss. If you are a quick scalper after a few pips, it is too fast to
input a stop loss, so keep your hand on your mouse and close your
trades fast.
8. Trade using only
3%-5% of your equity.
9. Do not trade if
you are emotional or have any drama since these issues may interfere
with your decision making. Do not trade when you are tired, sleepy,
hungry, upset, angry, or not feeling well. Pay attention while
trading. Phone calls, texting, children, dogs barking, and other
distractions interfere with thinking.
10. Not every day is
a trading day. If you trade the Asian session in the evenings
sometimes it is volatile and choppy. In this case, it may be best to
trade the longer time frames using Forex Trend Dominator alerts
option. Enjoy your dinner, spend time with your family, and relax.
11. Be patient and
focus. Sometimes you must wait for a safe entry.
12. Trade during the
session(s) that suits your personality or lifestyle. For example, if
trading during the early New York session does not suit your
personality, you may prefer to trade the Asian Session (8 p.m. EST)
or London Session (3 a.m EST).
13.
Know the times of news releases.
http://www.forexfactory.com/calendar.php
14. Print the news
calendar or jot down the times on a writing pad or notebook. Set the
alarm on your cell phone as a reminder.
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| Intraday Trading Tips |
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