Overview

Having a daily routine and sticking to your trade plan is critical to your success in trading the Forex Market. Having a specific routine and trade plan which incorporates your capital management will ensure you maintain a disciplined approach to trading.

Your objective is to identify low risk high profit trade opportunities. They are:

Perfect Trade = (Fundamental + Technicals same direction) + Economic Driver (in same direction) + No GeoPolitical
Nice Trade = (Fundamental + Technicals same direction) + No GeoPolitical
OK Trade = (Fundamentals neutral + Technicals good) + No GeoPolitical

 

Risk Management Entering the Trade

Perfect Trade = Full Position Size +/- Recent Performance (4CLR)
Nice Trade = 1/2 position size +/- Recent Performance (4CLR)
OK Trade = 1/4 Trade Size (Is this really worth it?)

 

Actions when buying or selling on the 1hour chart

BUY

Buy the dip back towards the support trendline OR
Buy the breakout of the resistance trendline OR
Buy the live economic data release

SELL

Sell the rally back towards the resistance trendline OR
Sell the breakout of the support trendline OR
Sell the live economic data release

Let’s get to work!

YOUR DAILY ROUTINE

Your objective is to identify trading opportunities that #TradeWithTheMarket

You need to reconnect to the market and check what has happened since you last looked. You are primarily checking the majors and crosses in your trading session, looking for currencies that have made some large moves and then find out what made them move. You need to understand what the primary fundamental drivers in the market are so then you know what currency pairs to focus on!

STEP 1 – CAPITAL MANAGEMENT

Open your Trading Platform & complete your risk profile.

Minimise your trading platform as you will only need this to enter your trades once you have completed the market analysis.

*** DO NOT BE TEMPTED TO WATCH PRICE ACTION ON YOUR TRADING PLATFORM ***

FUNDAMENTAL + TECHNICAL ANALYSIS

Reuters Xenith provides real-time global market data and news & it’s where we conduct all of our Fundamental & Technical Analysis. If you have Reuters Xenith open the application – If you dont have Xenith then use our Market Insights and Daily Analysis pages, or you can subscribe to Reuters Xenith.

STEP 2 – Check the MAJOR CURRENCIES

(Click Image to Zoom)

Where are they trading?

Instructions:

Open the ‘Majors’ tab on Reuters Xenith and check:

  1. Where has each currency pair been?
  2. Have there been any large moves?
  3. Are the markets correlating and ‘Normal’

Complete the table using the most recent short term bias direction. If the markets are normal you can use the Normal Trade Size calculated in Step 1 – If not then use 1/2 the trade size.

Complete the table below (example shown)

USDEURUSDGBPUSDAUDUSDNZDUSDUSDCADUSDJPYUSDCHFNORMAL/CORRELATING
SHORT TERM BIAS
USDEURUSDGBPUSDAUDUSDNZDUSDUSDCADUSDJPYUSDCHFNORMAL/CORRELATING
SHORT TERM BIAS

STEP 3 – Check the NEWS

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What happened yesterday?

Instructions:

Open the ‘News’ Tab on Reuters Xenith and scan the ‘Market News’, ‘Breaking Views’ and ‘Commodities Markets’ to:

  1. Identify why the moves happened in Step 2
  2. Are the markets behaving normally (That means are all the majors moving in the same direction as each other in relation to the USD)
  3. Identify why a currency is not correlating

 

STEP 4 – Check the TECHNICALS

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Identify Potential Key Entry Levels & Currency Direction

Instructions:

Open the ‘Tech’ Tab on Reuters Xenith and go through all the major and crosses and

  1. Update Trend Lines
  2. Identify Potential Key Entry Levels
  3. Identify Weekly and Daily Trend Direction for the majors only and complete the table

Complete the table below (example shown)

-WEEKLYDAILYST BIASTECH OUTLOOK
EURUSD
GBPUSD
AUDUSD
NZDUSD
USDCAD
USDJPY
USDCHF

STEP 5 – Check the USD

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It’s the most important currency so it’s important to see what it’s doing everyday

Instructions:

Open the ‘USD’ Tab on Reuters Xenith and Check:

  1. Weekly, Daily, Short Term Bias
  2. Establish the Technical Outlook

Complete the table below (example shown)

-WEEKLYDAILYST BIASTECH OUTLOOK
USD

STEP 6 – Check the upcoming ECONOMIC DATA RELEASES

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Where’s the next potential move coming from?

Instructions:

Open the ‘CALENDAR’ Tab on Reuters Xenith and Check:

  1. The high impacting economic data releases (2 or 3 bars)
  2. Identify all the economic data releases that align with the tech setups found in step 4

 

STEP 7 – Check the CENTRAL BANK SENTIMENT

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Instructions:

Open the ‘Central Banks’ Tab on Reuters Xenith and check:

  1. Direction of each Central Bank.Enter an UP, DOWN or SIDEWAYS arrow to the corresponding Central Bank.
  2. Has there been any changes in any central banks sentiment?
  3. Are there any central bank events/speeches/releases coming up?

Complete the table below (example shown)

FEDECBBoERBARBNZBoCBoJSNB
SENTIMENT

STEP 8 – YOUR NEXT BEST TRADES

Put it all together

Isolate the currency pairs that have:

  • Clear short term direction
  • Clear Medium term trend
  • Clear key technical entry levels
  • Upcoming data releases

Complete the table below (example shown)

CENTRAL BANKECONOMIC DATAFUNDAMENTAL OUTLOOKWEEKLYDAILYST BIASTECHNICAL OUTLOOKBUY/SELL
EURUSDSELL
GBPUSDSELL
AUDUSDSELL
NZDUSDSELL
USDCADBUY
USDJPYBUY
USDCHFBUY

YOUR TRADE PLAN


Your trade plan is your personal trading strategy, whilst following the T4T Core Methodologies you may wish to experiment with other ‘probability enhancers’. We have provided a basic trade plan to follow, to keep you safe.


MANAGING OPEN POSITIONS


Great so you chose the correct trade and it’s going in the right direction, your trade isn’t over yet. It is unlikely that your trade is going to shoot straight to your Take Profit, so we have created a process that will ensure you dont loose out on your well chosen trade.

Normal Market Conditions

ADR 80-150 per day
No Geopolitical News
No Economic Crisis
No External Events

Current Position
Stop
Take Profit

Current Position
Stop
Take Profit

Current Position
Stop
Take Profit

= 30 pips in profit
= Move to entry (Break even)
= 75 pips

= 45 pips in profit
= Move to 25 pips in profit
= 75 pips

= 60 pips in profit
= Move to 45 pips in profit
= 75 pips

Choppy Market Conditions

Geopolitical events in play

 

Current Position
Stop
Take Profit

Current Position
Take Profit

Current Position
Take Profit

= 35 pips in profit
= Move to entry (Break even)
= 75 pips

= 45 pips in profit
= Sell 25% of position

= 55 pips in profit
= Sell 25% of position

Download Daily Routine & Trade Plan Checklist
Get your checklist laminated and use a chinagraph pencil

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