Three Trading Routines of Successful Traders That Newbies Need To Follow

You can’t trade immediately just because you wanted to do so. There’s a process that you need to follow. Trading isn’t just order execution. Rather, the decision-making part is more time-consuming than it precedes the time you spend in the order execution because it determines your failure or success in trading. It is just like using a highly capable Forex trading platform like MetaTrader 4 without much knowledge about it. Then, you end up wasting its potential because you don’t know how to manage it.

If you want to come up with an irreproachable decision, you have to take all the necessary information you need and get it processed meticulously. Remember that most of the time, failures are mostly caused by hasty decisions that are made out of the little information that you have. Information matters. And because of that, here are some pre-routine routines that one must do before coming up with a decision in Forex trading.

Keeping an eye on the technical levels

Trendline, as well as the support and resistance levels, are considered as critical, long-term levels of Forex trading. Those trends you see in Forex can become your friend until the end. But these levels also have the potential to mark the end of your trading.

The problem is focusing on short-term charts is that you tend to get blinded or oblivious to them. You only see their worth once the market gets on you. It is better to save regrets and make success, not mistakes. As much as possible, you should visit your weekly and daily time-frames before you make any crucial decision. Other than that, analyzing the long-term chart should become your routine over the weekend.

Keeping an eye on daily economic releases

What sets the trend in motion throughout the day are the news events and the economic releases. These things are very important for technical traders because they have the power in changing your short-term status. Most traders are paying too much attention to their charts without reading the news release.

It is much better if you can start your day by checking the economic calendar. Check it right before you enter a trade. Make it part of your Forex trading routine. If you cannot diligently do so, an indicator that delivers economic news right into your MetaTrader 4 account will be very helpful. This enables you to remain updated no matter where you are.

Tracking down the short-term price action

Whether you’re a short-term trader, a long-term trader, or a scalper, you must not neglect short-term price action. You must always study and read about the behavior of those price actions. There is a lot of time that it provides a long-term trend shift.

Furthermore, you must keep along with the short-term support and resistance levels so you can make a better entry. For example, if you want to go long for a currency pair, you must not choose a short-term resistance. Always remember the importance of short-term levels since they provide instant profits right on your screen that in turn gives you better decision making.