Whiteboard Wednesday - If You Have Five Minutes Each Day, Do These

By GKFX Team  |  19/04/2017 10:18

Whiteboard Wednesday - If You Have Five Minutes Each Day, Do These!

Add your daily highs and lows to your charts. These will give you a great starting point when looking for key levels and looking to place your stops and limits. 

Check all time frames. It doesn't matter if you are trading short, medium or long term, always look to all the timeframes and fully understand the trend on each one before you trade. 

Keep on top of the economic calendar. Know what macroeconomic news is due for release that could affect your positions.

Video Transcription:

Hello and welcome to Whiteboard Wednesday. This week, we're going to look at some of the key things you should do if you only get a few minutes to focus on your trading every day; everyone is busy so if you don't get much time to trade and only get a few minutes to login, these are three of the key things you should be looking to do during that time.

Number 1: Pinpoint the weekly highs and lows. These are the pivotal levels within a chart, it doesn't matter what chart you're looking at, it could be currencies, equities or commodities, these levels will be pivotal for the trading week and they will help when you're trading and when you're looking to put stops/limits into the markets. They will be incredibly important and you'll find that the market levitates to these various points in the week, so every single time you get a chance to login to your platform, make sure you pinpoint the daily and weekly highs and lows because they will help you a great deal.

Number 2: Check all the time-frames. This will come into play when you're looking at trading short-term, or when you're looking to trade in and out of the market or you're looking to trade and hold your position for a week, a few days or a few months, but you must make sure you understand what's going on in the whole picture of the instrument that you're trading. So, say we're looking at the EURUSD, but we're only looking to trade on that day, it's still very important that we look at levels on the daily chart, the 4-hourly chart and even as far out as the weekly chart, just to ensure that you have the whole picture of whether the market will be bullish or bearish, and vice versa, if you're looking to hold your position for a long period of time, always go in and look at the shorter-term chart, look at the hourly, 30 minutes, 15 minutes and make sure that you get the whole picture. The wider time-frames and looking at all time-frames will give you that wider approach, providing you with more data, allowing for better trading decisions.

Number 3: That last point means every single day checking the economic calendar, checking the bits of data being released. Whether it be from the US or from the EU, depending on what position you are holding, always look at those areas of data being released. We can look at these when we're trading and forget that there are bits of data coming out all the time, so if you have the position on and forget that there's data coming out, you're likely to be hit by the volatility coming out of those numbers. Always know every day what's coming out of the economic calendar, what time it's coming out and what impact that'll have on your position. To be caught on the wrong side of economic data can mean big issues for your trading, so make sure you check that calendar every single day.