Always be aware of the current market environment. If I had one word to use to describe the market right now it would be “jumpy.”
Sure the use of erratic or volatile might be more appropriate but I do like jumpy.
Questions that you need to be asking yourself about the market state on an intraday, daily and weekly basis.
Is the market trending? Is the market choppy? Is it range bound?
How far should I allow the trade to run accordingly to the market conditions?
Today the Federal Reserve jumped in with a surprise 0.50 rate cut. US equities rallied and then sold off. Gold is bid and the strongest. Makes sense. JPY is strong. DXY is selling off but what happens next? Will other Central Banks follow and cut rates? Tomorrow the Bank of Canada is expected to cut rates by 0.50 now. Will the ECB also act soon?
The Asian and London sessions ahead could be just as jumpy which often happens after the Fed acts. Best to stand aside right now and watch and wait. Things do not seem clear to me right now.
In the meantime you need to be working with me. Forex Online Trading Academy members send me your trade setups, let me know which you think is the best of the bunch and let’s keep pushing forward.