If trade does not go in my favour within an hour or so after entry I exit trade do not wait for stop loss. As a not the greatest thing that helped me was reviewing my trades.. I followed all the other rules but did not really review. The first detailed review I ever did was after a 5 month period of trading and it was an eye-opener. Thanks Rayner for sharing this useful article, God bless you and give you much years to live and give you more power to produce more helpful articles.
Hy Rayner, am just new in trading.
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I trade the daily charts for two years now and I can say it helps me a lot. I have noticed that my stops are usually over pips on most markets but I can accommodate that with good risk management. Thank you very much for your ever insightful guides. What is Trade View? Is it a special software and if so, how do i access it? Thank you very much Rayner.
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This information was very usefull for me. Could you share some tips, how to create and update watch list of stocks or markets? I am the follower of your you tube channel and now reading the articles in your website to improve my Forex trading knowledge. So If I want to open and close the position in a day, what is the time frame is best suited for me. Which Time frame I need to use for analysis and trade. Because I try to use the MA as you suggested, but when the Time frame is changed the results are confusing. So please need your advice.
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Actually I was doing trading in my live account and lost the money, so now spending my time to understand my mistakes. Till that time I am planning to invest the money for Copy trading so that I can earn decent margins, Is there any possibility please advice. Hi Raynor- Great stuff like usual! I watch all of your youtube videos… so I feel like you are one of my best friends. I use a hybrid strategy- trend follower leaning a little toward swing trading. Two words… Heiken Ashi!!! If your readers are having trouble finding or exiting trends tell them to try looking at the charts with some Heiken Ashi glasses on.
It has helped me to find a really strong trend easier and stay in the trade a little longer. My win rate since switching to Heiken Ashi has had a dramatic improvement. First I look at a chart using Heiken Ashi candles, then if it meets my visual scan, I will switch to regular candles for a secondary confirmation. Again- Thanks for all the great info. Hi Rayner- Sorry for the typo in spelling your name in my post above. I know its Rayner… I should have proofread before hitting submit.
On which timeframe do you use the Heikin Ashi? Can you give a little more information? Many thanks!!! I would suggest trading in positive swap directions or at least pairs with fairly low negative direction. This will allow them to identify good entry points. Traders will often analyze these charts to look for resistance levels.
A good entry position could be when a candle closes above the said resistance level. The last timeframe we will go over is the day trading time frame. The day trading time frame is perhaps the most popular one that new traders are excited to get into. That being said, day trading can be the most difficult trading timeframe to find profitability. New traders practicing day trading will be required to make frequent buying and selling decisions.
New traders that are inexperienced and are required to make frequent trades open themselves up to the possibility of more losses than if they were to go with a more long term approach. The day trading approach relies on small market fluctuations. This often requires day traders to be stuck staring at their screen to identify good trades. Long hours staring at a screen can cause fatigue. This short term approach also offers a smaller margin of error.
Why Use Lower Time Frames For Entry Locations
When it comes to day trading, there is generally less profit potential. This means tighter stop levels. Tighter stop levels can sometimes mean more losing tradings compared to a longer-term approach. I advise that you first get comfortable with long term trading and swing trading before getting started with day trading. It cannot be denied that there are many advantages to engaging in various forex trading time frames. They become clear when comparing forex versus stocks. On the other hand, when it comes to a stock that does not possess a high level of liquidity, the trader may not really benefit from a short term time frame, as it will not provide much new information in such cases that there has been no change of the price.
It is realized that another benefit of the usage of forex trading time frames is that the forex market runs twenty-four hours per day each day of the week. Traders are presented with varied market conditions when they apply various forex trading time frames during distinct trading periods. For example, consider that this can allow for the range of markets during the Asian trading period.
How to Use Multiple Time Frame Analysis to Find Better Entry and Exit Points -
Or during the US and European crossover period, this can allow viewing of the markets that are trending. It is common for those who are new to trading on forex to wonder if a certain forex trading time frame is more powerful than others. Closing remarks The best time frames for day trading and swing trading are different. Day trading strategy uses lower time frames such as m1, m15, and m30 chart time frame and swing trading higher time frames such as H4 and daily chart. Overall, picking a trading timeframe will depend on your goals and trading style.
All trading timeframes offer the potential for great profitability as long as you are educated and comfortable with the positions that you are taking. I like to use several time frames during trading, and then I feel comfortable.
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I remember starting to trade Forex and being lured into trade Non-Farm Payroll release. Those fast spikes looked enticing but often times, the slippage I got made it not worth the effort. Add to that, any lag in data or order entry would end up costing profits. With the daily time frame trading approach, the news or even spread widening by a Forex broker has little effect on the trading position.
Most Forex traders, actually any market, will generally use swing highs and lows for their stop loss location. You can bet that many traders were taken out of their positions on these two spikes at the extreme of a trading range. This is why we see a lot of people take up trading while they have another job.
They understand the concept of not putting all your eggs in one basket. Traders who choose a longer term approach begin to harness the ability to let their profits run. There is a drawback though. You may, depending on your stop loss approach, give back more unrealized profits as price pulls against you.
In time, you will learn that sticking to the plan you designed, was always the best way to go. You will use two trading indicators:. Follow the same approach as you did for the first trade. You have to accept losses in trading and the first trade is a loss when priced retraced 4.
No sooner had you entered and we had an immediate price reversal that hit your stop loss. When we begin to see price flipping around the moving average, it is the sign of a trading range. The first trade on the left is valid but price eventually pulls back and stops out for less than the initial risk. That is a good thing. Price begins to put in action that begins to range.