1. Bear in mind key reversal price patterns

"The head and shoulders pattern is one of the most powerful price models," said Zanger. Other reversal patterns like the double top/bottom or triple top/bottom pattern, then the wedge pattern, the parabolic curve - while less common, it is just as important as the first pattern in determining the area. price reversal ”. And here's the first thing you need to do: keep in mind the price patterns that help determine the zone of reversal.

2. Don't overreact to the news

"Basically, trading news is impossible for small traders, because the information they have is mostly old information" - Zanger

The market usually dyes red and goes to the bottom when news is bad, when there is good news everyone gets excited and pushes prices to the top. But stop and think, if everyone is excited to buy, then who else to continue buying? And when the buyers run out, there's only one direction left for that market to be down.

3. Understand the difference when the market goes up and down

“There is a huge difference between a bull market and a bear market. Buying at a deeply bearish market can make you more profitable when the market reverses, but if it continues to fall you have nothing but losses. ”- Zanger

4. Identify the stocks that lead the market

This is a secret that does not have much to do with the market but mentioned it so that you can have more knowledge about securities.

In 2008, after the bottom of Apple's stock began to rise again and become market leaders, some other stocks such as Baidu, Priceline also played the same role as Apple. Those who made the right investments at that time made a lot of money. In the period before 2004-2006, Google was the leader.

By identifying stocks with high returns, you will identify which ones will lead the market. And when they no longer play that role, it's time to consider that the upside is slowing down.

5. Never "forget" the Fed

No one can dispute the force the Fed can do on global financial markets, especially foreign exchange. Whether you are in a technical or basic school, you should not ignore the news from the Fed. Trying to learn how to combine it with the method you are trading is essential for a better result.