InvestorQ : what prepration do you make for the day for currency trading?
vikash ojha made post

what prepration do you make for the day for currency trading?

Riya Dwivedi answered.
3 years ago
Currency trading requires preparation in terms of the insights on currencies, insights on global news and your own risk appetite. Here are a few takeaways.

Ensure that you have narrowed down on the pairs you want to trade. It is always best to specialize in a small number of pairs only. Try to specialize in these pairs and have a hang of the technical support and resistance levels, the accumulation points and the key news based triggers for the stock. Get insights on how global news is likely to impact these currencies. Is the US manufacturing and services data likely to make the dollar index weaker? That means you can sell the USDINR pair. Also look at data points like China data, EU data, US jobs data, labor updates, growth, and inflation, etc.
Finally, look at your own risk appetite. What are your current open positions and are you ready to take on more currency risk or should you first lighten your positions before taking fresh positions. Also, evaluate if the news flows are unfavourable to any of your open positions and also the break-even. You are ready to trade currencies.