You sit down to check the markets. You review recent price movements and consider potential trade ideas. But what happens next?
- You may quickly stumble upon what seems like a great trade idea but feel uncertain if it's too good to be true.
- You spend 30-60 mins delving deeper into the markets only to find yourself trying to figure out what to do next.
- Or you're putting in a lot of effort and mental sweat to craft a high-odds trade but it's not working out.
Sound familiar? If so, now there's a temptation to skimp on crafting a trading catalyst and game plan and jumping straight into a pattern or similar, right?
But you've now inadvertently killed the golden goose. Why's that?
Let me explain. Aside from the meaningless "noise", price movements are reactions to events. And as a trader, it's your job to uncover them.
Example ideas:
- A counter move occurs in the market you trade when XYZ market opens. Not an elaborate idea, so not a large payer. But it's a catalyst that leads to tradable price movement.
- Lifting COVID restrictions in China is a boost economically. A move up in markets, even if short-lived, is likely. But difficulties of investing in China mean traders look to express the trade via a proxy market. Look for the idea, followed by the proxy market to move in tandem. The second idea is more advanced hence it provides a higher payout catalyst to the first idea.
Watch a real-time catalyst on the AUD/USD: Using live trading mentoring to illustrate, you'll see a catalyst with depth and substance crafted on a big news day when explosive fireworks in price are the norm. A high-impact economic release is chosen because if you can craft high-odds trades on the toughest days, you can nail your trade ideas daily. Right?
Forex and derivatives trading is a highly competitive and often extremely fast-paced environment. It only rewards individuals who attain the required level of skill and expertise to compete. Past performance is not indicative of future results. There is a substantial risk of loss to unskilled and inexperienced players. The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged products you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading on margin, and seek advice from an independent
Editors’ Picks
AUD/USD remains on the defensive above the 0.6400 mark following Australian PMI data

The AUD/USD remains on the defensive, trading near 0.6415, losing 0.02% on the day. The Aussie faces some follow-through selling after the Federal Reserve (Fed) decided to hold the interest rate on Wednesday but expected at least one more rate hike for the year.
USD/JPY twisting on the north side of 147.50, Japan CPI ticks lower to 3.2%

The USD/JPY is holding steady with a bullish lean for early Friday trading, teasing into the 147.650 region as the Japanese Yen (JPY) eases on softly-declining national inflation figures.
Gold recovers its losses above $1,910, eyes on US PMI data

Gold price recovers some lost ground around $1,920 amid the USD demand. Hawkish comments from Federal Reserve (Fed) Chair Powell drags XAU/USD price lower. Investors will closely watch the preliminary US S&P Global/CIPS PMI data.
Quant price maintains steady multi-month downtrend but 60% of QNT holders remain above water

Quant price is trading with a bearish bias, a steady state that has prevailed for the most part of the year. Despite the downtrend, the majority of QNT token holders remain above water, sitting on unrealized profit.
Japan Interest Rate Decision Preview: Bank of Japan expected to stand pat despite Ueda hawkish hint

The Bank of Japan (BoJ) is set to announce its monetary policy decision early on Friday. The Japanese Yen (JPY) could see a wide reaction, not because of the decision itself, but because of any potential hint to the end of the ultra-loose monetary policy that has been in place since early 2016.
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