5 Steps We Must follow Before Each Trade | Forex Advanced Strategies

What are 5 Steps we must follow before each trade

Before making trading decision, we must analyze the reason behind any big move in either directions. Here are 5 Steps we must follow before each trade decision.
  1. What is Fundamental’s Status
  2. What is the Reason behind the Move
  3. Whether the Sentiment has changed
  4. Fair Price of a currency Pair
  5. What is Good Entry Price
How to Evaluate the Reason Behind the Move?
  • We must analyze the reason behind every move, is it due to fundamental or sentiment.
  • Whenever there is a big move that has broken Major S/R lines that must be a move due to change of Fundamental.
  • We focus on data (focused by central banks for monetary policy) like inflation data, employment data.
  • We must have overview of central banks officials regularly.
  • When ever there is move AGAINST THE DIRECTION, this is the move we are looking for, if due to SENTIMENT change, this is going to give us HUGE PIPs.
Whether the Sentiment has changed?
  • We have clearly seen that Sentiment may go against fundamentals.
  • What the heck is with Bearish fundamentals when everyone wants to BUY a pair.
  • We must observe and have clear view of the sentiment and when ever it is against fundamentals, we must wait for peaks (if pair’s direction is down) and dips (if up)
  • Sentiment is our friend and provides us best opportunity.
Good Entry Price
  • Price has to return to a fair market price after all.
  • After big moves against the trend, we will see sentiment change towards, the direction
  • Economic Data in support of direction is ahead.
  • This is good entry price.
  • How to find best entry price
Below videos will explain these "5 Steps we must follow before each trade":

5 Steps we must follow before each trade (English)