How to Trade the market Using Daily Graphs
Why trade the market using daily graphs
What’s so special about daily graphs? Why should you trade the market on daily graphs? What’s all the bother about?
Daily graphs mean that 1 new price action bar forms each day. It means that there is only one new piece on information each day for you take into consideration. This makes your trading decisions less emotional as you aren’t flowing a kilometer a minute to maintain with the data as it loads onto your screen. In short, it allows you to be a lazy investor. You have time to make your trading decisions, trading the market on the daily time schedule really does allow you to fit trading into yourself.
Higher timeframes V Lower timeframes.
Higher time schedule graphs really do give you the chance to fit trading into yourself. It also means that broker transaction costs are a really small percentage of the trade. If you’re stop loss is 100 pips and your spread (transaction cost) is 2 pips you have a 2% transaction charge. Whereas if you’re trading a smaller time schedule chart, with say a 10 pip stop, but still a 2 pip spread, you have a 20% transaction charge. binary signals What a big difference and has a dramatic affect your trading.
Lots of new traders start off their journey to trade the markets and begin on the smaller timeframes trying to make money as quickly as possible, fighting against market noise, and high impact news events, not to mention the significantly higher transaction charges. Ultimately it’s not hard to observe how they end up losing money, become disillusioned and stop trading. A simple solution to this is to pay attention to the ‘less is more’ approach and trade the markets on the higher timeframes like the daily graphs avoiding the difficulties of high impact news events, higher transaction charges and market noise. Focussing on these higher timeframes is a lot more sensible approach to trading the forex markets. It is also much easier to make money on these higher timeframes.
If you got the option of a or B, and you knew that option A was easier, why wouldn’t you choose it?
Trade the market in under thirty minutes a day.
If you’re going to trade the market in under 20-30 minutes a day, you should have a structure and a routine that you stick to on a day to day basis. You also have to be sure that you follow your routine day in day trip. This way your trading habits become instinctual and it becomes almost like tying shoes, something that you should not actually think about to do. You’re intuitively doing all the work and never having to consciously think about doing it. Of course, this takes time to get this level, but this should be your goal when starting out.
Go from being instinctively unskilled, to becoming consciously unskilled, so you’re aware of the mistakes you’re making. Then shifting to consciously competent your location profitable and making money, then accelerating onto instinctively competent, your location a consistently profitable investor, not having to concentrate all your energy on the you’re doing.
It’s this step by step process that you want to advance through as you learn to trade the markets.
How to trade the market using daily graphs.
First of all, strictly ensure that you have your graphs set up correctly with price action being the most important thing on the screen.
Secondly, restrict yourself to 10 or so currency twos. Don’t look at 30 different currency twos every day, as it’ll try to be too much work.
Finally, ensure that you have your graphs on the daily time schedule.
Now you can focus on the daily graphs and trade the markets with strong price action signals and fit trading into yourself.
