Learn How to Trade Forex First
Trading forex to become wealthy is not like putting on your trainers to go for a run. It is much more than what you can imagine. It is a system which requires an orderly understanding and knowledge. That is, it must be understood following a specific order.
If you don’t follow a specific order and start somewhere in the middle, you will come out confused. You don’t want this, do you? You will need to learn how to trade the market first.
If you already have experience trading stocks or crypto or anything else, it is necessary you hit the reset button and learn this from scratch. This can take you 5 days minimum to finish. The best place to find it is here: Learn How To Trade The Forex Market.
Perhaps, you don’t want to take this long to learn. That is cool but know that you will never have success in this market if you can’t be bothered to do the bare minimum to learn how to do it. You will get used to failure.
This article is not here to upset you. There is no need for instant gratification. Go slow and make sure you learn the right way.
For good results, these would be the best steps you would take:
- Start by learning Preschool, Kindergarten, Undergraduate – Senior.
- Take your time in finding a good platform and a good broker
- Spend some time doing some Demo trading and get it to where you understand everything you are doing.
- Finally, learn how to dominate the market.
If Forex Trading is really what you want to do for a living, you should know all the nitty-gritty of forex, regardless of what you end up using in your trading. Why? Because it can always change over time…crypto being an example.
“Whatever you do, don’t get attached to a lot of it. You will lose money, seriously”.
Put more effort learning what to avoid and why.
If you truly do care about making the highest returns possible, you now know where to best focus most of your time. Why would you waste time anywhere else?
Many a time, newbies to forex trading often ask questions on the best time to trade… and this article will focus on this only… suggested answers to other questions are best for another time.
Question!
“Which is the best time frame to trade Forex to have the best chance of winning?”
Well, there are lots of factors that go into whether a trade will win, however, selecting the best time frame is certainly fundamental. There are possible answers to this question but most of them do not really make sense…answers like ‘It really comes down to what your trading personality is…try them all and decide which is the best for you.”
Certainly, this is not an answer to the question. Surely, you want to win, right? You want to make money in the shortest amount of time, like everyone else in the market, correct? If you said ‘YES’ to both questions, then start by understanding the benefits to the time frame.
Benefits to Daily Time Frame Forex Trading
There are benefits of trading forex on the daily time frame over any other:
- The whole shebang works better – this phenomenon is true, and you will be constantly blown away by how much more accurate everything is on the daily. It only fails if an indicator was bad, to begin with. Even the tested price action tools that many make fun of, are much more accurate on the daily time frame than they are anywhere else… for example, instant gratification.
- Outperform almost everyone by trading 10 to 15 minutes a day – people value time over money these days. Successful businesses don’t sell services anymore, they sell time. So, you must ask yourself how valuable is your time? For instance, if you are trading the 15 minutes chart, you cannot say your time is worth less than someone else because it is not true. If you are a scalper or a day-trader, and only spend 10-15 minutes a day making trades, you will end up spending a lot of time waiting. Why? Because price does not automatically start moving as soon as market sessions open, and sometimes certain market pairs, although very popular, don’t move at all… and there you are sitting, waiting and watching. And worse, often time, there is a lot of misdirection and head-faking done by the Big Banks in the early parts of the sessions, and many a time, a day-trader can get caught up in one of them. Perhaps, you take a loss to start the session and keep trading… now the market owns you. So, what is the solution? “Check-in a half hour before the trading day ends, check your charts, decide if there’s anything to be done, execute, then your day is done and you can go do whatever you want for the rest of the day”.
- Seeing News Events as Distractors – how bad is it when you are day-trading and even the smaller, more insignificant news events could knock you out of your trade? It will be miserable, right? It is difficult enough to keep your charts in order not to be spending time navigating some data, speeches from some chairman somewhere in the globe. Surely, as a trader, you hate will hate yourself, especially when this happens after you have placed a trade. The greatest benefit of the daily chart is how most news events do not matter to you anymore. There are very few news events, per pair, which you would even have to bother yourself with - a topic for another article but worth mentioning here. If the direction you are trading is technically correct, the price will correct itself over time, and often sooner than later. The reality is that in Forex Trading, technical analysis is greater than fundamental analysis by a very large margin – a forex trader must use this to his or her absolute advantage.
- Ability to Zoom Out and See the Big Picture – It is better to be able to filter out the noise rather than to be surrounded by it; otherwise you are giving up control on purpose. Always remember this is the money you are talking about. If the hypothesis is true that the Big Bangs manipulate the market on the smaller time frames – where most traders are - much more than on the daily time frames – it is prudent to bet a lot of technical analysis tools work better on the daily charts which have fewer intrusions from the banks. It is better to back away from the noise and stress to have a much better view.
The good News
This article is not here to take away from you some sort of edge you may have in the market already. The good news is that there are two things you can take away from this:
- You can do both – That is, double-dip if you want; have one setting on your platform just for trading daily charts, and scalp on another. If both works, why would you not just do both? As such, you put yourself in the best position to win by trading on smaller time frames. The key is to succeed and make lots of money in the end, right?
- Everything Works on Every Time Frame – we all trade the same time frame. Yes, we know that a good indicator is a good indicator, a good technique is a good technique, and a good system is a good system – they just all perform better on the daily time frame, period. Very often, you hear people say that the longer time frames – weekly or monthly – are better. This is not true because the biggest issues with weekly or monthly, are how there are many large news events contained inside of it which means you cannot avoid them. The fact of the matter is that they can, and often screw up your trade. Many a time, that trade in a time frame like that can be hundreds if not thousands of pips and it is not worth it. Believe it or not, researched indicators and the like, always point to the 1-hour and 4-hour time frames performing better.
“The daily time frame is the best time frame to trade forex”.
It’s time you set yourself up for success, where others have failed. It’s time to hit up the Core Concepts. There are three main ways to go now. The most important things to know in Forex trading are…
Forex Money Management
- Watch this video HERE
Trade Psychology
- Watch this video HERE
Technical Analysis (Trade Entries)
- Watch this video HERE
Go Get It!!
There is much work to be done, at least, is half the fun making it happen, and becomes yours. Make it yours by getting that place you’ve always wanted to be.
You now know just how attainable it is, so, go get it.
Source
https://www.babypips.com/learn/forex
https://nononsenseforex.com/forex-q-and-a-podcast/best-place-to-learn-forex-trading-askvp-1/
https://nononsenseforex.com/forex-q-and-a-podcast/best-time-frame-to-trade-forex/
https://en.wikipedia.org/wiki/Pareto_principle
https://www.youtube.com/watch?v=086ozcHDZPw&list=PLPqWQo6-TXfE8G_Mmxow0znSSoWTu44e7&index=2
https://www.youtube.com/watch?v=ryNDemU24uk&list=PLPqWQo6-TXfHvb2XDgU-WgFIubbo3gBVR
https://www.youtube.com/watch?v=7Yj0E5FRwBs&list=PLPqWQo6-TXfE_EEypsX7-by2qub_S09WN
