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.
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