#BNBATH880 Successful Market Reading (3)
Economic News (Interest, Inflation, Unemployment Data).
Company Earnings (in Stocks).
Central Bank Decisions (in Forex).
The smart trader combines news and technical analysis: news determines the direction, and technical analysis determines the entry and exit points.
6. Market Psychology and Traders
Fear and greed are the primary drivers of the market.
A long candle suddenly = often an emotional surge (Fear or Greed).
Following market sentiment gives an idea of whether the majority is optimistic or pessimistic.
7. Risk Management
Even if you read the market correctly, without capital management, you will lose.
Always set a Stop Loss.
Do not risk more than 1-2% of your capital on a single trade.
🔑 Summary:
Successful market reading = determining the direction + monitoring important levels + understanding price behavior + using news and indicators as support + strict risk management.