I’m quite new to Forex, but I’ve been learning and studying like a college student cramming for an exam. I feel I have the beginnings of a dependable system to know when to enter a trade(using technical analysis). The one thing I seem to be having trouble with is knowing when to get out.
I’ve been trading primarily using 5 minute charts along with 30min and 1h charts for establishing the prevailing trend. When all my indicators line up I enter the trade and thus far my system has been profitable.
However, I’m not sure if this is a bad habit to get into or not but I’ve been using 1 minute charts to track my trade. Sometimes the spikes will make me nervous, both the upward and downward. If I see a favorable spike I’ve been exiting for the profit but if I see a bad move I tend to get the “you better cut your losses” thought on my brain and just can’t shake it.
I like to establish support and resistance levels on the 5m, 30m, and 1h charts and use those to determine an area of entrance and exit. But the ups and downs of the 1m charts are irresistable to me! I guess my question is, should I stop using the 1 min charts to watch the action and stick to the charts that convince me I’m making a good trade? Sometimes I find myself exiting trades on spikes rather than paying attention to my calculated exit points(resistance/support levels).
Thanks for any input!