Planning Your Trading Week
This article is for forex traders who want to spend less time in front of the computer due to outside commitments and time constraints. However these traders would still like to have a chance to get a chance at the majority of the pips and return on their investment. Some forex traders are 24/5 or full time traders and some of this lesson may not apply to them. If your schedule is tight and you have schedule constraints please read on.
One question that is seldom asked by traders with busy schedules is how to use their time effectively and efficiently to make pips from the forex market, they want to maintain a full time job and still have time left for important people, hobbies, and activities in your life. Trading the forex efficiently and getting a lot of pips in the least amount of time is what they want. This article is not about taking shortcuts or not demo trading, it is about maximizing your computer screen time to build solid trading skills.
Best Times To Trade The Forex
The forex market is a 24 hour market, but it would be crazy to sit in front of the computer all day. The best time to enter forex trades is actually a much smaller window of time. Please read about the main trading session and the best times to trade the forex market. This will make your trading more schedule-efficient and begin the process of evaluating how you can spend less time in front of the computer. This is more critical for forex traders with a lot of outside commitments or anyone who want to spend less time in front of the computer, but still make pips.
Evaluate The Charts
Analyzing the charts takes time but it also saves time. If you analyze the charts thoroughly using multiple time frames daily, the time it takes to do this may cause you to decide not to trade at all, especially in a choppy or non trending market. You get paid back for your effort with more time for other things.
Evaluate the market, is the market trending, oscillating or choppy? Look at H4, D1, and W1 time frames or larger trends that are in place or developing. Look at the D1 trends across all 28 pairs we follow on the free trend indicators to see if you can identify trending pairs with more pip potential. Also check for large oscillation cycles. Then if you decide to monitor the market your time is well spent. When the market is trending on the larger time frames, trading the forex is much easier for people with busy schedules.
Set the price alarms that are specified in the Forexearlywarning trading plans and use The Forex Heatmap® to verify trade entries to intercept the moves. Entries into these larger time frame trends or large oscillation cycles are more sustainable and have a higher reward potential. Checking the H4 and D1 trends and larger on a lot of pairs only takes a few minutes, and, ultimately, saves time.
I would expect a full time trader to drill down the charts every single day looking to get as many pips as possible. Someone with time constraints I would expect them to drill down the charts using multiple time frame analysis maybe three times per week to see what the market is doing, the more the better. See what pairs have a lot of potential and pick your targets well using the trends of the market for better schedule management.
Use Forexearlywarning Effectively
Use Forexearlywarning and The Forex Heatmap® effectively. The “Second Opinion” trading plans are real time savers and they provide you with a daily snapshot of what pairs have good potential. Reading each trading plan will always keep you informed of the trends of the market. Anyone can have professional trend analysis across over many currency pairs and a set of free trend indicators. The Forex Heatmap® is a very efficient tool and it saves a lot of time because it tells you when to walk away from the computer and when to trade. If a part time trader can pick up one good entry per week with The Forex Heatmap® in the direction of the major trends this is a solid win. The price alarms we issue in the trading plans are also time savers because you will know when the market is moving.
Even if you are not trading today or this week you can read the daily Second Opinion reports to stay in tune with the market, the reports are compact and don’t take much time to review. If you plan your trades, plan your trading week and only trade pairs where good entries are indicated by The Forex Heatmap®, your trading efficiency improves.
The Forex Heatmap® is an effective time management tool because it allows you to track more pairs and decide what trends you may be interested in for short term trades, or trades with more potential in a trending market. The Forex Heatmap® will improve your efficiency and effectiveness as a forex trader. You can also quickly tell when not to trade and this saves a lot of time. You do not have to be in front of the computer if you use the heatmap, you just have to be near the computer to monitor the market at critical times or at intervals.
Forex News Calendar
Use the news calendar effectively. At the beginning of the week on Sunday night check the news calendar for the week. If the news calendar is “loaded” with strong news drivers at a concentrated time you may want to adjust your schedule and get in front of the computer for these news drivers, depending on your location on the globe. Doing this takes time but at the end of the week saves time and contributes to efficiency. Some pairs move ahead of news items and “set up” for buys and sells after the news. On the week of non-farm payrolls get plenty of sleep on Thursday night if you are in the USA or Canada time zones and just wake up ahead of NFP on Friday. This also contributes to time efficiency.
The Asian Session
If you have a full time job you can start by eliminating trading in the Asian session completely due to the much lower pip potential during this session to save more time. Adjust your schedule to get maximum sleep before the main trading session kicks in, if that is what is necessary in your time zone.
Pluses and Minuses of Weekly Pip Goals
Some people set pip goals for the week for time efficiency. For example if they have a goal of X pips per week and they hit their goal by Wednesday they stop trading for the week. On the surface it sounds good for time management but I am not so sure, if you make X pips by Wednesday and turn down a 500 pip trade on Thursday and Friday with a solid new trend that does not make sense. So I personally don’t set weekly pip goals and just let the market dictate the outcome and “take what the market gives me”, or try decide in advance if a certain pair or trend is something you may or may not be interested in trading. Part time traders need to be more selective without regard to arbitrary pip goals. Forcing yourself to trade early in the week could cause you a stop out.
If it suits an individual trader to set pip goals they will spend less time in front of the computer and that is fine, but understand the huge potential trade off of gained time versus lost pips. Also if you make X pips based on an arbitrary pip goal, and you close out your trades, you will leave too many pips on the table because that same trade you entered could keep going for days or possibly weeks.
Other Planning Tips
Remember Forexearlywarning has clients in many time zones around the world, whatever adjustments you make to your schedule may not apply to someone else. Look at your schedule and make adjustments as necessary. If you cannot trade the forex you cannot trade the forex. Be realistic and objective.
Its been my experience that as the week progresses market sentiment becomes more defined. Some experienced traders may not agree. Recheck all of the trends thoroughly and drill down the charts one more time around Wednesdays (midweek) and decide if any trades or trends are worth pursuing and monitoring.
Have access to laptops with wireless internet or other mobile devices this would be helpful for moving stops when prices are hit if you are mobile and on the go. Also, having all of your brokers phone numbers on your cell phone is also good for people on the go. Also set partial limit orders for some of your lots. Become a good student of forex support and resistance for assisting with setting partial limit orders.
Part time traders have less computer time so it will take longer to master the forex compared to a full time trader. Schedule your homework time to study all of the free resources offered by Forexearlywarning. Being a part time trader just means it will take you longer to learn the system.
Planning your trading week may involve making adjustments to your work schedule if you have a full time job. Contact your employer about adjusting your work schedule if this is possible. The trend these days is towards flexible schedules and working at home. If you can adjust your work schedule you might be able to spend more time in front of the computer during the main trading session and catch more trade entries. Also talk to your family and try to make some adjustments at home as well, so all of your family commitments are prioritized with your trading schedule.
Planning the forex around your life will make both better and give you the better life balance that everyone wants while getting the lion’s share of the potential pips. The goal is to maximize pips in the least time for people with busy lives.