Thank you I m new in trading please could you tell me how to prepare a week of trade ?
Firstly thank your for your question regarding "HOW TO PREPARE A WEEK OF TRADE", here some top 4 advise that i can share for you below:
Trading
in the financial markets is surrounded by a certain amount of mystique,
because there is no single formula for trading successfully. Think of
the markets as being like the ocean and the trader as a surfer. Surfing
requires talent, balance, patience, proper equipment and being mindful
of your surroundings. Would you go into water that had dangerous rip
tides or was shark infested? Hopefully not.
The attitude to trading in the markets is no different than the attitude required for surfing. By blending good analysis with effective implementation, your success rate will improve dramatically and, like many skill sets, good trading comes from a combination of talent and hard work. Here are the four legs of the stool that you can build into a strategy to serve you well in all markets.
Leg No. 1 - Approach
Before you start
to trade, recognize the value of proper preparation. The first step is
to align your personal goals and temperament with the instruments and
markets that you can comfortably relate to. For example, if you know
something about retailing, then look to trade retail stocks rather than
oil futures, about which you may know nothing. Begin by assessing the following three components.
Time Frame
The time frame indicates the
type of trading that is appropriate for your temperament. Trading off a
five-minute chart suggests that you are more comfortable being in a position
without the exposure to overnight risk. On the other hand, choosing
weekly charts indicates a comfort with overnight risk and a willingness
to see some days go contrary to your position.
In addition, decide if you have the time and willingness to sit in front of a screen all day or if you would prefer to do your research quietly over the weekend and then make a trading decision for the coming week based on your analysis. Remember that the opportunity to make substantial money in the markets requires time. Short-term scalping, by definition, means small profits or losses. In this case, you will have to trade more frequently.
SEE: Forex Walkthrough
Methodology
Once you choose a time frame, find a consistent methodology. For example, some traders like to buy support and sell resistance. Others prefer buying or selling breakouts. Yet others like to trade using indicators such as MACD and crossovers.
Once you choose a system or methodology, test it to see if
it works on a consistent basis and provides you with an edge. If your
system is reliable more than 50% of the time, you will have an edge,
even if it's a small one. If you backtest
your system and discover that had you traded every time you were given a
signal and your profits were more than your losses, chances are very
good that you have a winning strategy. Test a few strategies and when
you find one that delivers a consistently positive outcome, stay with it
and test it with a variety of instruments and various time frames.
Market (Instrument)
You will find that certain
instruments trade much more orderly than others. Erratic trading
instruments make it difficult to produce a winning system. Therefore, it
is necessary to test your system on multiple instruments to determine
that your system's "personality" matches with the instrument being
traded. For example, if you were trading the USD/JPY currency pair in the forex market, you may find that Fibonacci support
and resistance levels are more reliable in this instrument than in some
others. You should also test multiple time frames to find those that
match your trading system best.