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
EUR/USD trims gains after reaching weekly highs at 1.0925

EUR/USD peaked at 1.0925 on Thursday, the highest level in a week, then retreated to the 1.0900 area. The pair is holding on to strong daily gains, on its way to the highest daily close since early February, supported by a weaker US Dollar ahead of Friday’s US Core PCE data.
GBP/USD eyes 1.2400 as Pound outperforms

The Pound is among the top performers of the American session. GBP/USD is trading at the highest level in almost two months, near 1.2400. Risk flows are helping the pair while at the same time making it difficult for the US Dollar to find demand.
Gold: Bulls aiming to challenge the $2,000 threshold Premium

Spot Gold found demand during American trading hours and currently trades around the $1,980 level. Following a consolidative stage, the bright metal gained upward traction on the back of continued US Dollar weakness.
Cardano might have a bumpy road following a 25% recovery

Cardano price has had a disappointing run these last two weeks when compared to other major altcoins.
FTSE100 up for 4th day in a row, hits 2-week high

We’ve seen another positive day for European markets with the FTSE100 pushing up to its highest levels in 2 weeks, although it remains well short of reversing its March losses, unlike the DAX which has reversed nearly all its post 9th March decline.
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