- Researched the asset using price action, technical, and fundamental strategies.
- When the price is right. Avoid buying high and shorting low.
- When you understand the factors that affect the asset's price.
- When you are psychologically ready.
What is the best time to enter a trade?
Trading at the Opening of the Market\n\n Hence, this makes the time frame between 9:30 am to 10:30 am the ideal time to make trades. Intraday trading in the first few hours of the market opening has many benefits: – The first hour is usually the most volatile, providing ample opportunity to make the best trades of the day.
How do you know when to enter and exit a trade?
The safest strategy is to exit after a failed breakout or breakdown, taking the profit or loss, and re-entering if the price exceeds the high of the breakout or low of the breakdown. The re-entry makes sense because the recovery indicates that the failure has been overcome and that the underlying trend can resume.
What should you look for before entering a trade?
The 5-3-1 trading strategy designates you should focus on only five major currency pairs. The pairs you choose should focus on one or two major currencies you're most familiar with. For example, if you live in Australia, you may choose AUD/USD, AUD/NZD, EUR/AUD, GBP/AUD, and AUD/JPY.