10 STEP – BY – STEP GUIDE TO ENTERING A TRADE

PROPERLY IN FOREX

Step-1:-

*Neutral State of mindset.

*Bad Trading Psychology and Trading Emotions Kills Most Traders.

Step-2:- Pick a Currency Pair to Trade.

*Select Pair on Criteria.

CRITERIA:-

1)Spread.

2)Currency Strength.

3)High Impact Event (Impacts).

4)Volatility.

5)Major or Minor Pairs (High Liquidity Pairs).

Step-3:- Determine the Market Condition.

*Decide is it Trending Market, Consolidation Market, Ranging Market or

Volatile Market.

*The Strategy is Depends on the Type of market.

*Determine That Pair is in Uptrend, Middle Trend or Down Trend.

Step-4:- Pick a Strategy to Trade With the Trend.

*Trending Market:- Price Action, Pull Backs...Etc.

*Consolidation Market:- Channels, Price Holding, Rectracements, Breakouts,

Parabolic Moves.

*Volatile Market:- Breakouts, Candlesticks.

Step-5:- Check Trading Plan (Fulfilled all Criteria Supporting or Not).

*Criteria Example:- For Buying & Selling Scenario Confirmations.

1)RSI (BUY). 1) RSI (SEL).

2)Support (BUY). 2) Resistance (SELL).

3)Moving Average Slope (BUY). 3)Moving Average Slope (SELL).

4)Bullish Sentiment (BUY). 4)Bullish Sentiment (SELL).

5)Bullish Price Action (BUY). 5)Bullish Price Action (SELL).

6)Candle Sticks (BUY). 6)Candle Sticks (SELL).

Step-6:- Check the Larger Timeframes for Confirmation.

*Smaller Timeframe: ENTRY.

*Larger Timeframes: Check Overall Trend.

Step-7:- Choosing the Order Type.

*Decide Market order or Pending order.

Step-8:- Determine Stop loss & Target price.

*Mistake:- Setting Stop loss and Target Price after Opened a Trade.

Step-9:- Calculate the Right Lot size (Risk Management).

*Mistake:- setting Lot size Before Stop loss.

Step-10:- Check the Probability of Trade.

*Bad- (Max Losing).

*Mediocre- (R:R-1:1).

*High Probability Trade- (R:R-1:2).

*If u Follow these Steps it will be High Probability Trade.

*Trade With Psychology, Risk Management, Confirmations, Technical &

Fundamental Analysis.