One constant thing which most traders seem interested in is trading in larger time frames. They rather prefer sticking to the more controllable 5 – 15 minute time frame. Whatever reason a trader gives, the truth is everyone fears blowing up their accounts. Experts in this context point out a very important thing. They clearly suggest that there are lots of myths which encircle the market and make traders more confused in knowing – “Which time frame will be the best?” These experts bring forth some crucial considerations while using a Daily time frame Forex trading strategy.
- Never Enter The Market With the Wrong Mind-Set:
Most traders do and with due honesty, they are not so at fault. The reason being a common myth which states – Not Much Profits Exist in Higher Time Frames.
This is why most tend to focus more on shorter time frames. Experts suggest changing this mindset and state clearly that if one covers all the important aces and puts in the hours, profits will come to them. It’s a fact that shorter time frames generate more signals, but those signals are low in quality – many even misleading.
So, rather than going after quantity, traders with their daily time frame Forex trading strategy should aim for quality trading signals.
A 15 minute daily time frame Forex system will only showcase a fraction of the entire Price Action signal than say a 30 minute of 1 Hour trading daily trading chart. More of the core elements will be clearer in the latter and that will allow traders to make more profound decisions on their trades.
So, omitting the negativity and entering the market with the right mind set will help one succeed consistently.
- One Should Never Let Go of a Position Fearing – ‘The Longer They Hold, The Risky It Gets.’
A common notion is that quick in and out eradicates the chances of risk. Experts’ state those who believe this are at a bigger risk of losing money. Owing to some intraday volatility, a trader can get stopped out on taking a low time frame and a Stop Loss which is as tight as a bee’s butt.
Additionally, it also needs traders to monitor the screen all the time. Contrarily, holding long positions with daily trading charts requires one to maintain a level head and keep the trading discipline intact.
Risks will always come when trading currencies, but in comparison to short trades, using a reliable Forex Strategy Daily Time Frame and opting for a higher time frame does give more of an edge.
- One Should Not Shy Away From Holding Positions Overnight
Though somewhat true, such incidents are very rare unless there is an unexpected weekend gap from important global market events. Experts rather state that there is no benefit at all in closing down trades at the end of the day. The reason being, one’s end could be another one’s start. Some traders taking 1-2 days to reach a breakout point is very common. So, one needs to be patient- no matter whatever Forex strategies daily time frame one employs.
Doing so, one is allowing the market to do its thing. Also, by cutting out the trades at the day’s end, there is no telling the potential profit opportunities one is missing out on.
These are some of the crucial considerations which a trader needs to remember while using their daily time frame Forex trading strategy. Keep these in mind and profits will come eventually.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.