- Losing Like A Winner
- How To Stay Out Of Bad Trades
- 5 Trading Resolutions to Make in 2017
- How time consuming is Forex trading?
- Trade Like A Business
- Trading the Market Zones for a Profit
- Your Guide to Letting Your Profits Run
- Key Points to Accelerate Your Learning Process
- Discipline - Why You Don’t Have It. And How to Get It
- Transitioning from a Demo to a Fully-fledged Trading Account
- Why Traders Overtrade
- Learn to Trade the News Putting the Odds in Your Favour
- Setting Profit Goals: in Pips or Percentage Gain per Day?
- How to Let Profits Run?
- Get Prepared to Beat Your Previous Trading Achievements
- How to Trade the News Effectively
- Create a Trading Battle Plan
- Solution Focused Trading
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How Time Consuming is Forex Trading?
Techniques and tools to create a much more time-efficient approach to trading
How much time do you actually need to spend in front of the charts, sitting watching the Forex markets? I’m sure many of us at the beginning of our trading careers had the initial image of traders needing to be stuck sat in front of their computer screens day in day out, fixated on their charts, drinking copious amounts of coffee and constantly placing trades throughout the day but is this the reality and the only approach available to us?
In this article I will show you an alternative method of monitoring your charts, utilizing different techniques and tools to produce a much more time efficient, calm and productive approach to trading. I will show you how you do not have to be stuck in front of your computer screens all day long to still remain highly effective.
Time frames and Forex pairs
The time frames you use to hunt for trades dictates the frequency at which you need to come to check the charts. So, it stands to reason that if you trade the 5 minute chart you will be needing to assess the charts much more frequently than if you only traded the daily time frame.
I personally have no interest in any of the lower time frames below the 1hr period and base all of my trading from the daily time frame, using only the lower time frames when I see fit.
The number of Forex pairs you follow also effects your workload i.e. the more pairs you follow the more charts you have to consider, but this doesn’t mean you can’t follow 20 plus Forex pairs at one time, it just means you have to have a system in place to be able to monitor each pair effectively.
Having experience and confidence in your own ability to analyze the markets consistently and quickly is something which comes with time. Knowing where to hunt for trades and when to use the lower time frames correctly is where you save vast amounts of time at the charts. Having a clear idea of where you want price action signals to form, allows you to plan in advance, pick the trades you want and not have to follow the markets constantly.
Traders on the other hand who follow the markets too closely and for long continuous periods of time, can fall victim to getting sucked into taking trades from areas where they would probably not normally consider and this can be attributed to traders feeling pressure to take a trade to justify themselves as traders.