forex trading

There’s no doubt that the world of trading has turned on its head in recent years.

Once upon a time, this was something that was only open to a small group of people – usually working in the city.

Now, it’s something that has opened up to the entire world. Those operating in the big cities are obviously at one end of the spectrum, but thanks to the likes of Metatrader 4 it has also opened up to the Average Joe sat at home in the midwest.

Regardless of the group that you fall into there is one thing that remains the same; trade analysis. This is the thing that can make or break the typical trader and through today’s post, we will take a look at some of the areas you should be looking into if you are serious about taking your trading career a little bit further.

The price of stocks

Of course, all stocks are going to be priced differently. The point we are trying to make with this first consideration is how you choose the range of stocks you are going to be trading in.

You will soon find that you are much stronger in some ranges than others. After a while, you will gauge if you perform better with trades in the region of $5, or if larger stocks in the $50/trade area are better for your strengths.

The day of your trades

Unsurprisingly, not all days are equal. When it comes to trading, you’ll soon find that Monday’s can be really turbulent for the simple reason that they can be affected by anything which has happened over the weekend (as the market only opens here).

After analysing your trades, some of you might conclude that Monday’s are particularly strong for you. This might be because you can gauge how weekend events affect your trades, or for a completely different reason.

At the same time, Tuesday’s and Wednesdays are often very busy days for trading – but this doesn’t mean to say that they are going to play to your strengths. This is why it is important to lay down all of your trading data, and see which days you should be concentrating the most on.

The industries you are focusing on

If you happen to have knowledge of a particular industry, it goes without saying that this acts as a monumental advantage. Of course, these industries are going to be few and far between, which is again why you need to analyse all of your trades and conclude which ones are favourable to you. Which have you cashed the most profit on, and which have you struggled with?

The time you are trading

Contrary to what some beginners believe, you can’t expect to trade at any time and “get away with it”. In other words, all times are different. Some traders are more successful when they dabble in pre-market trades (between 4.30 and 9.30am), while others might find that their success is reaped at the opposite end of the day.

Like with all of the other advice we have outlined, if you lay down your trades and analyse them you will soon start to see which times are the most fruitful for you.

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