In today forex faq, I will be talking about a problem that most working traders face. In fact, I have received emails from readers of this blog asking the same question.
Below is the question:
I’m looking for a trading system suitable for a working person. I have 2 hours each day before work available where I do my chart analysis. I have had mixed results but still haven’t found the necessary confidence in a system suitable to my situation.
For a working trader, the only problem that you face is the lack of time. As you are unable to look at the chart for long hours everyday, you will not be able to trade short term strategy like scalping.
I will suggest those of you who do not have much time to analyze your chart everyday to use higher time frames like the hourly, 4 hourly or daily chart. The good thing about using charts from higher time frame is that you have more time to prepare for your desire setup.
Let’s take the hourly chart for instance, each candle that you see on the hourly chart takes 1 hour to form which means that you can more than an hour to prepare your trade.
Another good thing about trading with higher time frame is the significance of the support and resistance. You need to know that the higher the time frame, the more powerful is the support and resistance level.
You can see that the price is being resisted by a resistance level on the 15 minutes but on the 4 hour chart, the price has already broken a major resistance and is now being supported by a support level. I can tell you that the price will most probably move up and break the resistance on the 15 minutes chart as it is harder to break the support on the 4 hour chart.
I must say that the market movement behaves like water; it will always flow through areas with lowest resistance.
Another good thing about trading the higher time frame is you will be able to grab more profit per trade. Some of you may think that you will also have to put higher stop loss which is not true.
When I am trading on a higher time frame, I will look for trading opportunity first and once I saw one. I will switch to a lower time frame to optimize my entry. With this method, you will be able to trade with smaller stop loss and higher profit which is how most traders trade with high risk reward ratio.
To trade the higher time frame, it means that you will have lesser trading opportunity which is something that new traders find unbearable. When I am new in this field, I always wanted to get into a trade everyday and this is a problem if you are trading with higher time frame.
I hope that I have answered your question and for those of you who have some input to share, do feel free to give your comment below
Upon constant request from readers of this blog, I have started a Forex Signal Service that will help you to trade your account using 2 out of the 8 strategies in my course.
If you will like me to trade your account for you and help you recoup back your previous losses or help you grow your trading account, you can take a look at my Forex Signal Service below
For those of you who are totally new to forex trading, I will suggest that you read through this blog post that I have written for beginners
If you are interested to learn how I do my forex technical analysis, you can take a look at the post below