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Making a Trade Plan
If you trade foreign exchange, or Contracts for Difference, you need to understand the core components of online trading – technical and fundamental analysis – to trade effectively and to be able to make trading decisions fast and accurately.
- Analyse the overall trend of the market.
- Consider the macroeconomic indicators associated with fundamental analysis.
- Use technical analysis (trend, tools, support/resistance levels) to define precisely your entry and exit points (limit order and stop loss using OCO).
Trade Your Plan
- When a price is available, or close enough to your entry point, then pull the trigger! Another opportunity may not be available later on. When the entry point is in your sights, take it. Wait too long and you may miss it.
- Set up your OCO (limit order and stop loss for your trade). By doing so you protect your position whatever happens in the market and remove the stress attached to the trade leaving two options available: either liquidate for your profit or a predefined loss.
