In today forex faq, we have several question from one of our fellow traders.
Below is the questions:
Have been following you for a few months. Very happy with what I see. Can’t afford the university course yet but I watch your videos and read your blog to do the best I can with the demo account I have.
The questions I have are very general so I can confirm I have the basics correct.
1. What time frames should I primarily focus on?
2. Currently I look at about 20 pairs, are there specific pairs I should concentrate on?
3. Are there any days of the week you avoid trading, like Monday or Friday for example?
4. Do you ever leave trades open over the weekend?
Overall I still lose money on my demo account but I am loosing less so that is better lol.
I am looking forward to when I can afford the University Course, hopefully soon.
Thank you for the honest and great information you offer, it is refreshing after looking through so much of the forex foolishness and scams on the internet.
Glad to hear that you are trading off the demo account as there are a lot new traders who started trading live with their hard earned money without any reliable strategy.
As for the course, do not rush yourself to buy. Just wait till you can afford before you get the course. At the meantime, just spend more time on my blog reading those articles that I have written as well as videos that I have recorded for you guys.
Below are the answers to your questions
1) I personally is a fan of the 15 minutes chart as I find that it has a good balance between number of trading opportunities and false alarm.
When you trade the lower time frame like the 1 or 5 minutes chart, you will find that there are a lot of false alarm trades which causes you to lose money.
If you trade on the higher time frame, you will find that there are not much trading opportunities every month.
2) It is almost impossible for anyone to trade 20 currency pairs as it is far too tedious and distracting.
I will suggest that you stick to 1 currency pair for a start and once you manage to have profitable months with that 1 currency pair, you can then move on to the next.
Personally I find 4 pairs enough for me. I am trading the EURUSD, GBPUSD, USDJPY and GBPJPY.
3) I do not avoid any days in trading and I do not avoid days where they are major news release. I simply trade according to the setups.
If there is a setup that is according to my strategy, I will enter it irregardless of what happen.
As a trader, the only way you can make money is to trust your strategy and make sure that you execute it perfectly.
4) Once I enter a trade, I will set the stop loss and target profit accordingly. When the price has moved certain pips in my favor, I will shift the stop loss to breakeven and just leave the trade there as the outcome is either a winning trade or breakeven trade.
Even if it means that I have to leave it over the weekends, I will do so.
I hope that I have answered all your questions and do feel free to email me if you have any more questions.