Patience pays in trading.
And trading the higher time frames requires patience.
In fact, you need to also understand the higher time frames before you trade the lower time frames.
That is the reason why why I urge traders to trade using higher time frames extensively when trading.
That to me is an EDGE, an advantage in your overall trading formula that you can use to reap profits from the market.
I see so many traders trade using lower time frames without first mastering the higher time frame charts.
That can lead one to trade emotionally and be consumed in the end by the gyrations in the market.
In my Forex course, I teach attendees how to get use to and even master analyzing and trading the higher time frame charts.
This includes the Weekly, Daily and 4 hour charts.
Once they have learned how to read and understand the higher time frame charts, at least for 3-6 months will they then be “allowed” to trade on the next lower time frame chart.
This has bode well for most traders in my group. They produced better performance.
Some traders came with the idea and that they should only trade the 5 min and 15 minutes chart. And some lose money taking this route. 🙁
I don’t blame them as some have attended courses elsewhere and that is what they had been taught all along.
They do what they had been taught. I can’t fault them on that.
Why is it beginners tend to lose money when trading on the lower time frame charts without looking at the higher time frames?
The reason is simple.
When you trade the lower time frames without first understanding the higher time frames, you are like someone trying to make an assessment of road conditions by standing by the roadside.
What you’ll see are cars zooming fast by you and in the end you’ll just have dust on your face. Splashes of water if its raining.
Wouldn’t it be better if you could go up a hill and look at the road from afar. In fact you can even see a huge part of the road and hence be able to really understand why the cars are slowing down or why they are moving fast.
Going up a hill and looking at the cars from afar is like looking at charts at higher time frames.
You need to go the higher time frames and assess the market conditions from those charts.
You may want to look out for price action signals and the prevailing trend in those time frames before you go to a lower time frame.
The higher time frame charts can tell you main trajectory the market is moving and hence when you trade the lower time frames, you take the position of the least resistance.
Yup, that is what I teach and share with the ForexAchievers community.
I also tell them that there is a reason why some courses teach them to trade the lower time frames.
I think I will share that on another post.
However, I am currently feeling reluctant to share this openly as I think those doing this might not like it that people know their tactics and the reason why they would prefer people trading on lower time frames.
If you are really curious and want to know the answer to the above “mystery”, pm me aite.
It may be too sensitive.
Anyway, if you hadn’t know already, I run a Forex trading community at Forexachievers.com
Check out some of the things we have on the site.
To your success!
Pro Trader & Trading Coach
Want to know how we would trade this setup and all future setups? Join us as a Premium ForexAchievers Member! ===> Click here!
Learn to use Technical and Fundamental Analysis in our Startup Guide & start making Pips!
Join us as a Basic ForexAchievers Member and get the 6 Modules FOREX NINJA STARTUP GUIDE plus Gain Access to the PROTECTED SECTION of the GLOBAL MARKET REVIEW posts!