Long before I started teaching and coaching other traders, I was stuck in the same cycle of boom and bustle that I took one step forward and two steps back that you are probably suffering from now. Unfortunately, I find that most traders never go through this.
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Most traders spend most of their time – which is often a short time – trading in very short timeframes. Worse, when these traders do not get the returns they want, they usually focus on what is not working. They are trading even higher than the current volatility rate.
In today’s lesson, I am going to share with you three ideas that have completely changed my career, which have allowed me to move beyond the vicious cycle of Forex trading and curve my trading plan. Move up. By the end of this article, I am confident that you can gain a serious and practical insight that will allow you to change your business career as well.
Trading in higher time frames
I am very happy that I learned the importance of analysis and trading at higher times relatively early in my career. If it were not so, I would be joining countless people who have simply burned their capital, and who knows what I was doing now.
I literally went from a confused, angry, tired, and frustrated person who was addicted to watching charts and trading charts and had no other hobbies, to a quiet, very stress-free family man, over the course of a few months, then Because I stopped analyzing and trading in the lower timelines. Today, I am really sorry for the poor trader who is still trying to analyze short periods of time. Every five to fifteen minutes a new business cycle releases a lot of adrenaline. Four times an hour, they follow the inexhaustible signals of the market. If this is successful, it will not be a problem, but it seems that the vast majority will fall quickly and lose their capital due to the analysis of these midday charts.
Reasons why I believe long-term timeframes are the best option for trading:
- Daily charts show the most important market view.
- Less noise and false signals than short-term graphs.
- It teaches you to be patient in the long run.
- Trading takes less time on daily charts and gives you more free time.
- Daily charts or daily trades allow you to tailor trades in any schedule.
- Reducing charts and conflicts means less temptation to trade too much.
- Less trades in daily charts do not mean that you take more risk in each trade, nor does it mean that you cannot make money every month (two incorrect chart trades).
Low frequency trading
Most novice traders are somewhat drawn to the adrenaline-frenzy lifestyle often portrayed in Hollywood movies.
Whether through movies or thrilling stories, most traders think that day-to-day trading is easy and makes them rich quick. Sorry, but this is a really funny idea, because it is far from the truth that almost everyone finds for themselves when they start trying to trade on a daily basis.
Now you can work this way if you want. You can do this for about a week. Then, you will either run out of money or your energy level will drop so low that you may not be able to continue. This is in line with my point about trading at higher time frames. Shortly after realizing the need to focus on higher time charts, I switched to what I call low-frequency trading.
Price action signals and price intersection
And finally, the last change that changed my life as a trader was finding trading positions with a very high chance of success based on price action signals at market intersections. Let us explore this further for strangers:
- Price Action: Price Action is the study of price behavior over a period of time. If you can study price movements, you can probably see the price trend in a certain direction as well.
- Price intersections: In fact, it is an area where at least two levels intersect and form a powerful intersection that influences price movements.
Combining price-action signals mixed with higher time intervals and a lower frequency approach is the most accurate way to describe my trading philosophy and approach.
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