Make Your Life Easier By Trading The Higher Time Frames

Posted on July 12, 2010 by Yohay
Filed Under Forex Opinions, Guest Post | 8 Comments

Guest post from www.visionsofaffluence.com

So many forex traders focus exclusively on short term fluctuations of the market and spend their time watching charts in an attempt to profit. They trade like this because they believe that it’s the best way to profit in the forex market. But that couldn’t be further from the truth.

These traders are missing out on the power of the higher time frames in the forex market. The currencies of the world move in trends over the higher timeframes the same as they do over the smaller ones and if you open a trade in the right direction then you can set your self up for great returns without the stress and time commitment of the smaller timeframes. By higher timeframes I mean the daily charts and higher. Now I know you’re probably thinking to yourself “but those high timeframes have less trading opportunities” and while that is true, it’s not necessarily a bad thing.

You see while the higher time frames give of fewer trades. The signals that they do give are more reliable so you are less likely to end up in a bad trade because of a false signal. Also the moves are larger which means that you will make more pips on the trades you do take. The real benefit of trading the higher timeframes though is that they don’t require the constant attention that the smaller timeframes demand. With the smaller timeframes you have to be at your computer for the duration of the trading session constantly waiting for a trade to present itself and then once you get into a trade you have to monitor it. With the higher timeframes you only have to check your charts at most once a day. If there is a trade then you take it and go ahead with the rest of your day and if there isn’t then you still go ahead with the rest of your day. There is no need to constantly monitor your charts. So, if you want to take the stress and time commitment out of your trading then I suggest you trade the higher timeframes. Try it you’ll be surprised by the difference it makes.

If you want to discover what it takes to be able to trade for a living? Then visit visionsofaffluence.com

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Comments

8 Responses to “Make Your Life Easier By Trading The Higher Time Frames”

  1. James Chen on July 14th, 2010 6:05 am

    Excellent excellent post, Yohay. You are absolutely right. I rely on daily charts for most of my trading, and will rarely go below 4-hour charts. Thanks for all your great posts, Yohay. Keep up the great work!!!

    James Chen

  2. Yohay on July 14th, 2010 9:22 am

    Thanks again James. I must state that I didn’t write these posts, they are guest posts, but I’m sure the author will be happy with your compliments. Thanks!

  3. » Make Your Life Easier By Trading The Higher Time Frames | Fast Forex Signals on July 14th, 2010 12:36 pm

    [...] it’s the best way to profit in the forex market. But that couldn’t be further from the truth. Full story Tags: Forex If you like this post and would like to receive updates from this blog, please [...]

  4. Asaf on July 14th, 2010 5:00 pm

    Yohai and James,

    I have to say that in theory you are right but in practicality from analyzing more than $40B of real positions that we record on Currensee we can very clearly see that the traders that are successful are the ones that go for the short term gains (and losses)

    Not to take anything away from the points described in the great post my personal belief is that the bigger challenge with trading the higher time frame is risk management and control and being over greedy with trading.

    – Asaf.

  5. beejay on July 16th, 2010 8:12 pm

    @Asaf u are most probably ryt with ur analysis. lower time frame traders have the highest edge versus their longtime frame traders (daily and above)from my own experience of traders around me.but all come down to one goal and risk tolerance
    i understood this when i read a book titled “fractal market analysis” by by wiley printing

  6. beejay on July 16th, 2010 8:18 pm

    @Asaf u are most probably ryt with ur analysis. lower time frame traders have the highest edge versus their longtime frame traders (daily and above)from my own experience of traders around me.but all come down to one goal and risk tolerance
    i understood this when i read a book titled “fractal market analysis” by by wiley printing

  7. Aphillim on July 17th, 2010 1:39 am

    Thank you for the most useful advice. Could you, pleae, tell me where and how can you learn to trade on a larger (daily) time frame? Any books, authors, CD’s to recommend? Many thanks.

  8. Yohay on July 18th, 2010 11:50 am

    Asaf, thanks for your insight. This is very interesting.

    Aphillim, I don’t have a specific resource for this subject. Sorry.

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