Higher Time Frame Forex Charts for Day Trading
After 30 years of trading, and over 8 years of personal coaching in the forex trading business, one of the most common trading issues that aspiring traders continue to have is that they get lost in small time frames and miss the key levels (and higher probability trading opportunities) that the higher time frames provide.
My experience leads me to believe that the biggest reason for this is the need for action. Smaller time frames mean more trades. And folks, trust me, that's not a good thing. More trades bring with it a host of problems - far too many to delve into in this article. Smaller time frames DO have their place, but in my humble opinion, not for initial analysis.
Trading requires the patience to wait for high odds possibilities (setups) to present themselves. Waiting patiently is what professional traders do. If successful traders do that, and you're not successful, why reinvent the wheel? Success leaves clue, and this is an easy one!
So how do higher time frames help the over-trading problem? Well, by identifying key levels on higher time frames, ie 4 hour and daily charts for the purposes of day trading, and committing to waiting until those levels are reached before committing to a trade, it forces you to sit on your hands until a key level is touched.
Note that it doesn't necessarily mean that you want to trade at that level, but it alerts you to the possibility of a trade setup, and your game plan should provide you with an effective methodology for entering trades based on high probability patterns that can be traded at these key levels. Does that make sense?
I love seeing the transformation in traders once they understand what I've just said. I recently had one member, who has always been very good at reading support and resistance levels, tell me that he is now spending most of his time on daily charts, and it has made a significant difference for him. So now, his one hour chart trades are dictated by what the daily chart is telling him in terms of price levels and candlestick action.
Most people tend to greatly over-complicate the trading process, so I hope that this article helps you to understand that your time would be far better spent on the higher time frames. For day trading purposes, you should find the 4 hour and daily charts to be very useful!
Thanks for dropping in, and I hope you've found this information helpful. Please let me know if you have any questions or comments.
All the best,
Vic Noble
**To learn more about forex trading and how I teach, I have a FREE e-Book, plus 7 great videos on key trading concepts that I believe will genuinely help you. No obligation, just good useful information!
I'm Vic Noble, and after more than 30 years of trading, 5 1/2 years as as a futures broker, and a personal forex coach since 2006, I've had the unique opportunity of seeing what separates winning traders from losing traders. I just love helping so many people achieve success, and I know I can make a positive difference for anyone. So here's some great, 100% FREE educational material that I know you'll find helpful! Get it here: http://www.forextradingandeducation.com/wp/free-fx-training/
What Do You Need to Be a Successful Forex Trader?
Being a successful Forex trader is not just about having the right tools for the job it is about having the right state of mind. In this article we are going to look at the equipment required and also how to get focused on the job in hand. Contrary to all the sales hype out there Forex trading is not as easy as placing bets on a currency going up or down. A 50/50 bet that either goes against you or with you, Wrong; Forex trading is a strategic activity that is influenced by an array of different fundamental and technical issues.
First of all let us look at the equipment that one might need to be a modern day Forex trader; computer, of course this goes without saying but not just any old computer will do. You need to have a PC or laptop that is fast enough to fill your orders in the shortest time possible, most modern laptops and PC's will do the trick but steer clear if you are still operating a commodore 64. This also goes for your internet connection. Although it is pretty much unheard of these days, dial up internet is a waste of time you must have broadband and not through a mobile network. Although mobile dealing is getting faster there can still be a dangerous delay in filling orders. A secondary monitor is also a good idea as you will need to watch your charts and enter trades at the same time, once you have experienced using more than one monitor you will never go back.
Now you have the right equipment it is time to choose a broker; this can be trickier than you think. Funny enough there is a fair share of scam brokers out there that will do anything to get their hands on your money and I am not just talking about legitimate means such as the spread they charge. I only really have one recommendation here; do not be tempted by small spreads to trade with an un-established broker. Use a regulated broker by the Financial services authority of that country and try to keep it local where you can i.e. in the same country that you are living and trading.
Now, let us talk about the biggest key to being a successful Forex trader. Attitude; if you are an un-patient person then you might as well pack up your things now or start auto trading because there is no room for impatient people in the world of Currency trading. You only need to trade a couple of times a day to make a consistent living. In fact if you are trading more than 10 times a day then you are over trading and need to seriously look at your strategy.
You will need to detach yourself from the value of money, because if you let the emotion of greed or the fear of losing money get in the way of your trading strategy you are doomed, from now on you need to think in increments of pips and points and not monetary value. Most successful traders will only win around 30% of the time, but there wins will be 4 times worth their losses. Losing is a fact of trading and you will need to get used to that.
How great would it be to get paid to learn forex. At BOAFX we have put inplace a system that will do just that. You can learn forex whilst earning money from our set and leave trades. It is all part of an initiative to turn you into indepenant traders and earn money whilst you do it.
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