Mic check, is this thing on?
When it comes to trading futures and forex, it doesn’t matter what product or time frame you’re using; preparation is 99% of the game. If you don’t take trading seriously, you may very quickly find yourself sitting on the sidelines wondering where all your money just went.
Trading is a fast paced game, but you don’t have to think fast to react fast. As you hone your skills and develop your strategy, you will notice your reaction time improves in no time. That is why preparation is so important. When you know what to look for, you don’t have to think about your reaction; you just do it.
Setting aside even a short amount of time each day to study strategies and stay up to date on market news and events can make a drastic impact on your longevity in this business. As the old saying goes, “A fool and his money are quickly parted.”
Let’s Get Down To It
According to John, the trading week actually starts Sunday night. By taking some time to look at the longer-term charts (monthly, weekly, and daily), you get a better feel for what direction the market is trending. You also get a closer look at where some of the longer term levels are at that you normally wouldn’t notice on a shorter time frame chart.
As an aspiring artist, trading has always been extremely visual for John. When something sticks out to him on the chart, he will look for an opportunity at that level. Visual levels like swing highs, swing lows, volume, open interest, market profile, gaps, and trendlines are just a few of the things John looks for daily.
Your job as a trader is to look for and find opportunities, and sometimes they will pop up in the most unlikely of places. Understanding the resources available to you, and having the ability to implement them into your preparation, can help you identify those opportunities sooner, ultimately increasing your profitability and improving your risk management skills.
Remember, knowledge is power…