The Authority’ on Price Action Trading. In 2016, Forex chart types of excel won the Million Forex price based charts in excel Trader Competition.
1 big winning trade a month to be a successful Forex trader. Yup, that’s correct, 1 big winning trade a month. How is that possible you might ask? Well, I’ll bet if you go look at your trading account history right now you might just find the answer yourself. Some of you probably even know that this over-involvement with the market is why you are losing money regularly or struggling to keep your head above water. Sure, it’s possible to make money from sitting in front of your computer 8 hours a day staring at each tick, but why in the world would you want to? Now, let’s get back to my main point that trading lower time frames is decreasing your chances of winning and destroying your trading account.
To focus on daily chart trading you need patience and mental fortitude, this takes intelligence and forward-thinking, it takes checking your ego at the door, and it takes a realistic attitude. Yes, there are MORE trades on a 15 minute chart, however, there are also more false-signals and there is more random market noise, so you are just going to end up taking more losing trades and stressing yourself out more. This all contributes to a poor trading mindset and ultimately to you losing more and more money. Look at this chart below of the daily spot Gold market. While the amount of money you risk per trade is a highly personal decision that depends on your individual financial situation, trading the daily charts can allow you to risk a bit more per trade than trading the lower time frames.