Just thought I’d open a thread to get some opinion on the timeframe/chart that everyone is trading. Do you have a favourite chart that you trade on?
I will explain below my own personal opinion and how I trade. I am interested to see others’ responses.
Before I go into my own explanation of how I trade, I just wanted to say that I am nowhere near being a professional trader. I have been trading for over 2 years now and I am profitable (approximately 10-15% return on capital every month, my earnings from forex pay all my bills and a bit of saving monthly) while still having a full-time job that I love, but I don’t consider myself a professional just yet as I am sure there are still many things to learn.
Now don’t get me wrong, there are literally hundreds if not thousands of ways you can trade. So nothing is wrong or right here, but rather this is just something that suits my own lifestyle. So take what I have to say with a grain of salt, but I do appreciate any inputs or feedbacks that others may have.
SO WHAT TIMEFRAME DO I TRADE?
I trade the daily timeframe. Yes, DAILY. To a lot of people out there, this will be a normal thing to say but I am very certain to many others as I have experienced in the past telling, this will be quite a shock. Many will say well how long do you have to bloody wait to enter a trade, do you hold a position for months on end? The answer is no, I can tell you that I enter trades every week regularly, make nice profits every month while still doing all other things that I love in lfie.
IT SUITS MY LIFESTYLE
Here is the very first reason why it’s great to trade the daily chart. I live in Queensland of Australia. So the market changes over at 7 am every day. All I do is wake up about 30-45 minutes before, maintain any open trades I have, and look through charts for any new opportunities - I trade 19 currency pairs (mostly majors and minors) and also gold. Once I have done that, I close off my computer and move on with my life doing whatever I want! I don’t have to stare at the computer for hours on end waiting for an opportunity and yet still may lose. This way, I enter the trade based on my own trusted strategy and I let the market do its thing and come back the next day and repeat.
In between, I am able to do all the things that I love: go to my fulltime job, spend time with my family and friends, play sports, exercise, see a movie, the options are endless!
On top of that, I can easily still trade even when I am traveling or is on a holiday (if I want to) because it does not take any longer than 30 to 45 minutes a day to do.
IT GIVES YOU TIME
You have heard the saying, you can make money all you want, you can lose money and make it back, but time is something you cannot get back once it’s gone.
Why do you think companies such as Uber, Amazon, and eBay are so successful? Yes, they facilitate a platform to buy and sell products however, that’s not why people go to them mainly. Why you ask? It’s because it saves people time. Instead of physically going shopping, you can do so on eBay and Amazon and it turns up at your door a few days later. Instead of driving or walking out to buy dinner or a meal? You can do so through Ubereats and it turns up at your door sometime later. All in all, people these days value their time.
So why not you? Ask yourself this question, would you rather spend your valuable time on doing the things you love? Or spend it in front of a computer hours on end? If you answer is yes to the first question, then the daily chart is your solution.
Then also ask yourself this question, can you do what you are doing on the shorter timeframe for the next 10 to 20 years? If the answer is no, then look into trading the daily chart.
Now you can argue that trading is what you love and you don’t mind it, you do you, like I said, nothing wrong with that as long as you enjoy it and it makes you happy and in the end, you are making a profit. It’s just not for me.
Not to mention, sitting for a long time can cause physical strains such as back, neck and shoulder pain. And what frustrates me more, is that you can wait for a long time for an opportunity, and yet still lose. Of course, my strategy would lose as well, but I don’t have to worry about it as I am trading based on a strategy that I know and trust to perform well over time, while my time waiting for the trade to eventuate is spent doing the things I love and enjoy life.
NEWS NO LONGER AFFECT YOU AS MUCH
Trading the daily chart takes away your worries about minor news as well as some not overly important major news. The candle takes 24 hours to form and the news form that candle itself, so you don’t have to be overly concerned.
Of course, I am still taking cautions when there NFP and a few other major news. But other than tightening my SL and TP points and be a touch more cautious when entering a trade, once again, I don’t have to worry about it too much.
This thread is already long enough, so I will stop it here. Feel free to ask me any questions you might have and I am always more than happy to answer them.
I am also keen to hear from others what they think of this as well as what their own opinion and take are on what chart/timeframe they use to trade.
Thanks for reading and I look forward to hearing from you