1. Market analysis

This is exactly what you need to do at the beginning of your trading day, not just opening your computer, glancing at the chart, and placing loud orders.

Traders should start by analyzing the market, keeping up with the news that affects the market you trade. This will give Trader a grasp of the market.

2. Pre-session analysis

The information that traders need to analyze before the session is:
  • How is market sentiment? Are buying or selling factions controlling the market?
  • Are there gaps up or downs at the beginning of the session?
  • Is the trading volume strong?
  • How was the market's momentum in the session?
When a trader grasping this information helps traders in the right direction, arranging trading ideas with available information is something that few traders can do.

3. The impact of news

News will affect the price movements of the market. Price volatility is the key factor in a trading strategy. It could be negative, it could be positive. But traders need to know the impact of news of the day on the market, which will help you avoid times of negative impact on your strategy, and limit many unnecessary losses.

4. Volume of trading

An increase in trading volume is usually a good signal of an asset's trend. If a trader wants a profitable fast trading strategy, then that strategy should be trading in a trend with strong trading volume.

5. Near strong support resistance

If an entry point is executed in an area where there is no buying or selling pressure, it is very difficult to make a profit. The price zones with strong buying and selling pressure are the support and resistance levels.

The fact that the trader identifies strong support and resistance means that the trader can identify a price zone that is of interest to many people. When entering a trade there, the price gets an incentive to move. If your strategy is right, then you will get more profits quickly.

Above are 5 factors that help traders evaluate the quality of a strategy. Remember to check these 5 factors before making a transaction. Although it does not guarantee you will be profitable, it helps you avoid many potential risks.