SCENARIO RESEARCH ANALYSIS FOR DAY TRADING.
Analysing historical chart data to develop research backed edges for Forex, Indices and Commodities.
- FOMC Rate + Meeting
- Non Farm Payrolls
- BOE Interest Rate
- GDP US/UK
- Core Inflation Rate US/UK
- CPI + PMI US/UK
Introduction
SCENARIO RESEARCH: Historical data is often used to assess how different financial assets and markets have performed under similar conditions in the past. This can provide valuable insights into potential future outcomes.
PATTERN RECOGNITION: Historical data allows researchers to recognize patterns and trends in the behavior of financial markets. By examining how asset prices, market indices, and economic indicators have moved in the past, analysts can identify recurring patterns that may be indicative of how markets are likely to respond to certain events or conditions in the future.
BENCHMARKING: Historical data serves as a benchmark against which researchers can compare the potential outcomes of their scenarios. By comparing the current or projected market conditions to historical data, analysts can gauge whether the scenarios are within the range of past experiences or represent exceptional situations.
RISK ASSESSMENT: Historical data helps in assessing the historical risk associated with different scenarios. It provides a basis for quantifying the potential downside and upside risks. For example, if historical data shows that during a past recession, a specific asset class suffered significant losses, this can be used to estimate the potential risk in a scenario where a similar recession is anticipated.
VOLATILITY: Historical data reveals the levels of market volatility and variability that occurred during specific time periods. This information is crucial for understanding how market conditions may fluctuate under different scenarios and how asset prices may respond to varying degrees of market turbulence.
Latest Trading Chart Encyclopedia Charts
My day trading chart encyclopedia is my day trading guide which I refer to every day to show previous patterns and price action to aid me with my day trading.
5 Steps to Starting Day Trading
Trading Mentors
After doing extensive research I wanted to follow 5 traders who have been in the markets for at least 20 years to form a basis for my small account day trading. I found 5 each one offering different knowledge and experience to guide me through small account day my trading process. I am absolutely terrible at reading so I watch videos.
I have not watched/read/listened to any other traders other than the below.
Tom Hougaard – Physchology – Strategies
Every Loser Wins author, brilliant man, teaching me how to deal with the phycology of trading. Joined his Telegram group Jan 2023, didn’t take his trades but analysed where he gets signals from and along with Al Brooks course helped me understand setups. My small account day trading account would not have started if it was not for Tom.
Al Brooks – Price Action
30 years of trading experience in Price Action. Like most traders who start out (me) their charts are full of indicators, Al’s approach is simple and his course is the best in my opinion.
Mark Holsted – Strategies
Discovered Mark on YouTube under Spreadbetting Markets, watch a few of his videos, he is very clear and has over 20 years trading experience
Linda Raschke – Strategies
Tom Hougaard mentioned her a few times in his Telegram group, so good enough for Tom good enough for me! I use a couple of her strategies to progress my small account day trading.
Trading Platform
In order to maximise my margin as only having a small day trading account size, I need to find a broker which offered tight spreads and high level of margin.
My Trading Plan
My day trading plan consists of the following key elements:
1. Identify high-probability setups based on technical and fundamental analysis.
2. Set clear entry and exit points for each trade to manage risk effectively.
3. Utilize a combination of indicators and price action patterns for decision-making.
4. Employ strict position sizing and risk management strategies to protect capital.
5. Stay disciplined and adhere to my predefined trading rules and strategies.6. Continuously monitor the market for potential opportunities and adjust trades accordingly.
View in full my full small account day trading plan.
Trading Research
My research is based around US and UK data announcements and the impact on the markets and how price action reacted. All this analysis helps me with my small account day trading decision making.
- FOMC Interest Rate Decision and meeting
- CPI (Consumer Price Index) US and UK data
- PPI (Producer Price Index) Us and UK data
- NFPR (Non Farm Pay Rolls) US employment data
I take 2 days prior to data announcement, the day, and day after to monitor price action with the data result.
Disclaimer
Below is my disclaimer for my small day trading account, please read this.
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