How do you analyse a trade before entering?
How do you analyse a trade before entering? 1. Define the strategy: - Determine the type of trade (day trade, swing trade, long-term investment) - Set clear goals and objectives - Choose the markets and assets to trade 2. Market analysis: - Evaluate overall market sentiment and trend - Analyse market structure and key levels (support, resistance, pivot points) - Consider market news and events that may impact the trade 3. Technical analysis: - Study charts and patterns (candlesticks, trends, chart patterns) - Apply technical indicators (moving averages, RSI, Bollinger Bands) - Identify potential entry and exit points 4. Fundamental analysis: - Research the underlying asset's financials (earnings, revenue, dividends) - Analyze news and events that may impact the asset's value - Consider the asset's valuation and pot...