🔴 How To Trade With The Markets
⬇ Step-by-Step Process
Market direction should be the least of your worries as a trader and this will become your reality once you have understood and implemented this step-by-step process.
What is this process?
Its a process designed to allow you to determine the markets true direction so you can trade with the markets and not against them. Follow the process in this order when looking at the markets.
STEP 1: Fundamental Analysis, this is to understand why markets move.
There’s rhyme and reason for every move in the markets and fundamentals help you with that i.e. If inflation in the United States is increasing that will result in a negative reaction from Gold, Nasdaq, US30, and S&P500 because it means the interest rate will go higher or be kept at high levels and the U.S. Dollar will strengthen.
STEP 2: Inter-market Analysis, this is to understand the relationship between different markets and how markets are connected.
Using the same inflation example; the strengthening of the U.S. Dollar will weaken Gold.
STEP 3: Sentiment Analysis, this is to understand the mood of the market or how markets feel.
Since Nasdaq, US30, and S&P500 are weakening because of U.S. Dollar strength, it will result in a RISK-OFF mood meaning commodity currencies like AUD, and NZD can underperform and you can look to sell AUDUSD, and NZDUSD.
STEP 4: Technical Analysis, this is to understand how markets move so you can know when and where to buy or sell.
Now that you have a clear understanding of the first 3 Steps and you are confident in the direction to trade with the market.
You can then go to your technical chart to look for a buy entry on U.S. Dollar, a sell entry on AUDUSD or NZDUSD or Gold or Nasdaq or US30 or S&P500.
This is how you stop trading against the market and there is a reason why we have Technical Analysis as the last step in finding market direction.
To help you even further, if you comment “FIST”, I will send you a video to help you understand this process in further detail!
source
