Preparing for the trading day

» Posted by on Mar 7, 2015 in My Blog | 0 comments

Preparing for the trading day

Trading can be compared to many things in life but the easiest thing to compare it to is sports. If you have ever participated in sports you know that you don’t just start playing the sport. Take running for example, you don’t just drive to the place you are going to run, get out and start running. No. You check out the location first, determine the route you will run, make sure your shoes are tied properly, stretch first and most importantly make sure your accompanying music is ready.

Before you start your trading day, you need to make sure you prepare. Here is my list of things I prepare for daily:

1. Know what economic data releases are coming out and at what time, are there any scheduled central bank speakers.

2. Know where the previous month’s high and low are on current chart.

3. Know where this month’s high and low are on the current chart.

4. Know where last week’s high and low are on current chart.

5. Know where this weeks high and low are on the current chart.

6. Know where yesterday’s high, low and close are on the current chart.

7. Know where the 2 days ago high and lows on the chart.

8. Yesterday’s high volume and low volume areas.

Why so many levels? Levels are important to me because these are levels where the market turned before, so when we approach the level again I like to see what the reaction is going to be. You can make your own support and resistance levels, that’s fine. More importantly you need to determine what levels you are going to be looking at to trade around and go from there.


Submit a Comment

Your email address will not be published. Required fields are marked *


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>