On the final chapter of this trading journey I want to insist on a few basic elements which even though may seem simple, in fact, are one of the most important ones in trading: preparing the trading week, the importance of having a plan and, of course, money management.[youtube_post]OlCymYf87Ys[/youtube_post]
Regardless if you are a scalper, looking for intraday short moves in a currency pair, or a long term trader, looking for big shifts in the price movement, you should prepare your trading week accordingly.
First, Saturday should be your only free day. Do nothing, relax, spend time with family and stuff, just enjoy your free time. Because starting with Sunday, you have business to do. Take the economic calendar and check the week in advance. Look at what kind of the releases are gonna be make public next week, when, and prepare accordingly. For example, if you are looking at a week in front of you that has both interest rates decisions and non-farm payrolls to be released, than most likely you are having a trading range for the week until the releases, so better not jump aggressively on a trade until appropriate. Then take a summary look at charts for some technical analysis update before Monday is coming. And make sure you check the news stream during the weekend in order to find out if anything happened that might change your trading plan.
Second, think of a typical Monday as being one that begins with the London session taking previous Asian session highs/lows and look for price to end in the middle range for the North American session.
Third, keep in mind you price is consolidating more than 60% of the time, so when it’s time to move, make sure you’re not being caught in the wrong direction.
And after all this, definitely you need a plan. But that’s to come on the next recording.