Here are three of the most important points for successful trading:

1-Know the volatility schedules of your financial product.

Volatility will not be the same depending on the choice of your assets. I will give you an example with two currencies: the EUR/USD will trade at the opening of the London market (“breakout”), then in the morning, will take a break between noon and two o’clock and resume at the opening of the US market until around 6:00 pm (hours from United Kingdom). There will be a small resurgence in volatility around 3am.

On the other hand, the AUD/USD and NZD/USD pairs will offer high volatility between 1:00am and 4:00am, as well as during economic announcements. Knowing these times of high volatility will help you avoid waiting for the market to move or placing an order when prices are in a ‘range’ (i.e. they follow a horizontal path because investors have not yet entered the market or the market is simply closed.

2-Understand the economic calendar.

Every trader knows that it is advisable not to position yourself before any important economic news. It is advisable to download an online economic calendar and note the times at which important figures will be announced. You will then be able to position yourself according to the announced figure. In general, the question to ask to enter the market following an announcement is: what is the given value compared to the expected value? The difference between these two values is called the deviation. If the deviation exceeds a certain threshold, one can consider entering the market to make a profit. Otherwise, it is better to stay away from this announcement. When there are no important figures announced during the day (as is often the case on Monday), one can refer to the technical indicators.

3-Possess a trading strategy and plan.

Every good trader should follow the following checklist:

  • define your pairs or products to be traded during the day;
  • to have taken note of any economic announcements that may affect the day’s prices;
  • know the limits of his capital and have calculated the number of lots to trade and the level of his Stop Losses;
  • know in advance the approach that will be used for each trade (sentimental, fundamental, or technical analysis).
  • stay abreast of geopolitical events that may suddenly affect the markets.

These three approaches will give you stability and confidence and help you better understand your decisions.