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Tag Archives: strategy

Day Trading Verses Trading Daily And Weekly Charts

Day trading verses trading daily and weekly charts.

Some traders have different ideas on what day trading Forex is. I qualify day trading as trading anything less than a daily chart.

If you are trading 4 hour charts, 1 hour charts, 15 min charts or less, then you are day trading.

I am a day trader most of the time, but i can, and do trade longer time frames. The set ups that i use are better suited to day trading, but do work very well on the longer time frames.

The main benefit of trading longer time frames, daily and weekly charts is time. You can spend an hour or so every day analyzing the charts and set up your trades in advance. This style of trading is very good if you are in full time employment, or have other business commitments, or you just want more time to enjoy your life.

Day trading requires you to be at the PC for most of the day, looking for trading opportunities and set ups. Day trading is more exiting, but can also be more stressful. How you decide to trade is entirely up to you and each style can be equally rewarding.

This may come as a shock to some people, but the charts work the same way in every time frame from the 1 min chart right up to the monthly chart. Some trading strategies only work on certain time frames, but a good trading strategy should work equally well on any time frame. The smaller time frames are more volatile and set ups can be less reliable. You are also more likely to be stopped out of a trade if some price sensitive news comes out, but your stops are tighter on the smaller time frames, so you are protected to a certain extent.

I personally don’t trade anything less than the 15 min chart. I occasionally use the 5 min chart to manage a trade, or to get a better entry on a trade, but as far as set ups go its more likely that i will be trading 15 min, up to 4 hour time frames.

I like to trade everyday and if you are trading the longer time frames you sometimes have to wait for a few days sometimes a week or so before you get a good set up. I enjoy trading very much, and if i had to wait for a week for a trade it would drive me crazy, but each to their own. 🙂

If you are new to trading you have to decide what type of trader you want to be. Do you have the time required to sit in front of the PC and day trade, or do you prefer to take a couple of trades per week and have more free time? You can do both of course.

I teach people to trade any time frame so it makes no difference to me what type of trader you want to be, i can teach you either or.

For more information on my Forex training and mentoring program please click on the link.

3 Trades Today. 105 Pips Profit.

Funny old day today. Not much happening at all until around 5pm UK time and then the sell off began. I said earlier in the week that i would be looking for shorts this week as i thought the expected QE would not happen, and the word on the street today is that its not going to happen tomorrow, if at all. So i am expecting another sell off again tomorrow.

Our first trade was a Euro short entry at 12555, we closed that out at 12490 for 65 pips. Our second trade of the day was an AUD long trade. Our entry was at 10281 and our exit was at 10301 for 20 pips. Out third trade was cable long at 15772 and we closed that at 15792 for 20 pips profit on that one also.

So 3 trades today, all winners and 105 pips profit. A nice days trading today. We waited a long time for the move, but when it came we took advantage of it. If the market does not move, we cant make any money i am afraid.

This is how we trade, if the market is not moving you just sit and wait. My high probability Forex strategy teaches you to be patient and only trade when the odds are in your favor. If you want to learn how to trade this way, please check out my Forex training and mentoring program.

I am expecting a volatile afternoon tomorrow, and i hope we can get some good trades. What started off as a pretty low key week could turn into a nice little earner. If you are trading tomorrow, please be careful and tighten up your stops, as we could see some fireworks. I doubt i will be trading until after the news tomorrow afternoon. Have a great trading day everyone.

The Importance Of Forex Trading Strategies

To be successful in Forex trading you have to have a strategy. There is no point jumping in and out of trades on a whim. You look at the chart, and you think its going up so you go long, it then reverses on you and goes down, so you close your long position and go short. This type of trading is financial suicide in my opinion. You will never make money from Forex trading long term with a strategy like that.

You have to be cool calm and collected. You have to look at the market and read what its telling you. You have to plan your trades and have a valid reason for entering and exiting those trades. Only when you do this will you begin to learn how to trade correctly. If you know why you are entering and exiting trades, you can then analyze those trades and see why they succeeded or failed. By analyzing your trades you can learn to trade correctly.

There are many different strategies that you can use to trade Forex, some are good, some are not so good, and some are really good. Those are the ones i use. 🙂 I have been trading Forex for 8 years and i have tried and tested many Forex trading strategies. I currently have an arsenal of around 10 really good strategies and set ups that i look for on a daily basis. These strategies and set ups present themselves many times throughout the day, but i don’t trade them every time they present. I only trade them when the probability of them succeeding is very high. This is the key to my trading success, i use a strategy that trades on high probability set ups. I only trade when the odds are in my favor, and the chances of success are very high.

I used to take 20 or 30 trades a day when i first started to trade, now i may take 3 or 4 quality trades per day. Some days i don’t take a trade at all. I have not taken a trade today for example. If the set up is there i take the trade, if the set up is not there i don’t take it. I don’t force myself to trade, i am not in any hurry to give my money back to my broker thank you very much. Trading should be an enjoyable and rewarding job. If you are stressed out and frustrated with your trading then you are not trading correctly, and your strategy may be letting you down, and you need to find another one, and quickly.

However you decide to trade, and whatever strategy you are using, you have to realize the importance of it. Having a bad strategy is not going to be good for your trading, but its better than not having a strategy at all. If you can get into the habit of using a strategy then you can improve it, or change it.

If you are struggling to find a strategy that works for you, please consider my Forex training and mentoring program. I will teach you all my great strategies and help you implement them in live market conditions one to one.

Trading Forex Alone Or Trading Forex As Part Of A Group

Are you trading Forex alone, or are you trading Forex as part of a group of traders?

Trading Forex as part of a group has many benefits, but ultimately you are the one that pulls the trigger and makes the decision to enter and exit a trade, so you have to prepare yourself for times when the group are not available and you have to trade alone.

Some traders prefer to trade alone, as they feel a group trading environment could distract them from taking a trade. For example, if you see what you think is a great set up, and you share the set up with the group, if the majority of the traders in the group think its not so great, the chances are you will go with the majority and not take the trade, which is perfectly normal behavior, but you may end up missing a great trade. I have done this myself, so i know it happens.

Group trading is a great platform for new traders to learn from more experienced traders. Its very hard when you are first starting out in Forex trading as you do not know where to start. What strategies do you learn, and what do you ignore? What works, and what does not work? There is no point in spending months learning a new strategy if its a bad strategy, but if you are a new trader you will not know its a bad strategy until you have learned it, and proved in the markets that its not reliable. You have to learn the best and most profitable strategies from other successful traders, or you will be wasting a lot of time, and picking up a lot of bad habits along the way.

If you are considering joining a trading group you need to join a good one. Free trading groups are generally a bad idea in my opinion as they are full of noise. By noise i mean lots of traders with differing views and various get rich quick systems. You don’t know who to listen to and who to ignore. This can be really detrimental to your learning process. To be successful you need to seek out the top traders, and learn from them. 95% of Forex traders lose money, and 95% of them are in free trading groups and free trading forums. To be the best, you have to learn from the best.

So my conclusion is, trading as part of a group of proven top traders, or joining a live trading room is a great idea when you are first starting out, but to be successful long term in Forex trading you have to be master of your own destiny, and take ownership of your trading, win or lose. At the end of the day to be a successful trader you have to be able to trade alone.