Currency Trading For Dummies, 4th Edition
Book image
Explore Book Buy On Amazon

The first step is to commit to making time for market analysis. The more regular your analysis, the greater the feel you’ll develop for where the market has been and where it’s likely to go. Also, the more regularly you update yourself on the market, the less time it’ll take to stay up to speed.

It’s a lot easier updating yourself every day than it is trying to catch up on several days’ worth of market news, data, and price developments.

Give some long, hard thought to how much time you can realistically afford to devote to market analysis before committing yourself to a specific routine. You may find you’re able to devote only a relatively short amount of time each day, so focus your energies on only one or two currency pairs. If you have the time, you can more effectively follow and analyze multiple currency pairs.

At the minimum, you should be prepared to devote at least an hour every day to looking at the market and keeping tabs on upcoming data and events. Follow a routine that focuses on:

  • Multiple-time-frame technical analysis to identify support and resistance levels and to track overall price developments

  • Candlestick and Ichimoku analysis after each daily and weekly close

  • Reading economic data reports that have come out overnight to update our fundamental model

  • Assessing the likely market impact of upcoming data reports and events

  • Reviewing market commentaries to stay on top of major themes and overall market sentiment

This may seem like a lot to squeeze into a single hour, but with time and practice, you’ll get your charting and market information sources all lined up so you can streamline the entire routine.

About This Article

This article is from the book:

About the book authors:

Kathleen Brooks is research director at FOREX.com. She produces research on G10 and emerging-market currencies, providing her clients with actionable trading ideas. Brian Dolan has more than 20 years of experience in the currency market and is a frequent commentator for major news media. Paul Mladjenovic, CFP, is a certified financial planner practitioner, writer, and speaker. He has helped people with financial and business concerns since 1981. He is the author of Stock Investing For Dummies and has accurately forecast many economic events, such as the rise of gold, the decline of the U.S. dollar, and the housing crisis. Learn more at ravingcapitalist.com.

This article can be found in the category: