This video breaks down how to think ahead in a day trade—what we want to see unfold and what we don’t want to see—so we can make clearer, more confident decisions.
For more on day trading forex, see the EURUSD Day Trading Course.
As each price candle forms, we walk through the ideal scenarios that could lead to a trade, as well as the potential obstacles that may prevent price from reaching the profit target. We then also consider how we’ll respond when the price encounters those obstacles.
The goal is simple: think ahead. We plan for realistic possibilities based on the information available right now, rather than pretending we can predict exactly how price will behave as it moves.
We can’t know what will happen. All we can do is make decisions based on the information we have at the time. Accept that, and performance can dramatically improve.
This video reviews the EURUSD price action from March 13. The chart shows some of the trades looked at, with the relevant “obstacles” to consider in our decision-making.
Chart provided by TradingView, the charts I use.
Delve deep into more ways to improve your trading. The Trading Fix Book provides tactics for overcoming common trading problems.
Cory Mitchell, CMT
Disclaimer: Nothing in this article is personal investment advice, or advice to buy or sell anything. Trading is risky and can result in substantial losses, even more than deposited if using leverage. Affiliate links are used on the site: If you purchase a product via one of these links, this site may be compensated at no cost to you. Thank you for supporting the site in this way.
