Which Time Frame In Forex Gives You The Best Results? (Podcast Episode 3)

Which Time Frame In Forex Gives You The Best Results? (Podcast Episode 3)


this is the Forex Q&A podcast this is VP
professional Forex prop trader here in the United States and this is the
podcast where I answer forex trading questions that viewers want to know and
how do I know what viewers want to know well they ask me they go to nononsenseforex.com hit the ask VP tab and on that little contact form you ask me
whatever you want as long as it’s forex trading related and I haven’t answered
it already I will get back to you within 48 hours way more often than not and if
you like there’s a little box there you can check says I want my question on an
episode of the Forex Q&A podcast and that’s how we create our shows through
your questions now far more often than not was so great about the answers I
give you is these answers are not your common stock answers you are going to
get from most people who are out there on YouTube or on Twitter or anywhere on
the internet as far as forex trading goes most information out there is
consistently terrible if you have any chance of really winning in this
industry you need to go outside conventional thinking over 99% of all
forex traders never get to where they really want to be in this constant sea
of conventional thinking telling you to do the same 15 to 20 things over and
over again is what leads to this number being so high if you would like to vault
yourself into that fraction of a percent that can actually get beyond this this
is the podcast for you because these answers you’re not going to find
anywhere else most of these people online don’t trade for a living they’re
not able to they can’t get to that level they’re instructors they’re news reporters
and they’re very good at doing those things but if you want information from
somebody who has actually gotten there and you want to get there too this is
the podcast for you now the question here in episode 3 I love and as always
I’m not just gonna throw an answer out there and don’t back it up everything I
say whether it’s on the youtube channel No Nonsense Forex whether it’s on the
blog nononsenseforex.com or here on the podcast I always back it up with
everything I possibly can and the reason I do that well there’s a couple reasons
one is to qualify what I’m saying, two a lot of times when I give an answer to
somebody there’s a little bit of shock and disbelief that goes on with the
answer because either a it’s not what they wanted to hear or B it’s not what
they expected to hear or C both so just
like a good lawyer would I try to take that answer and go point by point and
explain to you why I feel the way I do and why I think it’s the right way to go
so here on episode (3) let’s go ahead and get right into the question Thomas from
the Netherlands asked this question and by the way you can put your city on
there too Thomas did not I will give your city and your country some love
here on the podcast if you like but he asks which is the best time frame to
trade Forex I want the best chance of winning so by time frame if you’re not
familiar on most charting platforms you can trade the five-minute chart at the
15 the 30 the 1-hour four-hour daily weekly monthly just depends on what
charting platform you have but those are the most common and I like I like what
he said at the very ends is the best chance of winning yeah you hear me use
this terminology a lot too winning and losing I don’t know what he meant by
winning but I can tell you what I mean I I don’t mean win a trade when have you
have a Plus money day or week or session or anything like that when I say winning
and I ask you are you winning in forex what I mean is are you making consistent
profit over and over to the point where you go long term man you look 12 months
after you started or 12 months after you really started keeping track are you at
a consistent clip percentage-wise to where you can trade real money and make
a good living off that or at least adjust a living to where you don’t have
to work a job anymore or are you trading at a good enough clip to where somebody
can see this and say wow I want to hire that person and bring them on my team or
to a lesser degree are you increasing and improving at a good enough clip to
where you’re gonna get there soon that’s winning if you’re the type of trader who
just wants to do this as a hobby that’s fine but almost everybody I talk to in a
perfect world would loves forex so much just like I do that they would love
nothing more than just to be able to do this exclusively and so that’s where I’m
trying to get you and that’s where the my answer to this question is hopefully
gonna get you one day so my answer is and it’s not even close the best
timeframe to trade if you really want to win consistently
is the daily chart and again it is not even close now if you hate my answer
don’t worry stick with me I’m gonna extend an olive branch to some of you
who like to scalp and use smaller timeframes but I’m gonna save it till
the end let me explain why first I believe more than anything that the
daily chart is the far superior chart to trade when you’re trading Forex there’s
really four main reasons I’ll start with the first one these are really in no
particular order but really the one I like the most is on the daily chart
everything you use every technical tool you use works better and more
consistently on the daily chart than any other chart out there if you guys know
my background you know that every single day after work I would come home and
test one two sometimes three or four indicators over and over on every
timeframe on every currency pair on all different levels until I found something
that either worked or I saw enough cases where it didn’t work that I would throw
it away and move on and if there was one constant in all of this research is that
every single time the daily chart turned out more consistent results than
anything else even if you’re using horrible tools like trend lines or the
RSI indicator they work better on the daily than they do anywhere else in
other words trades win more often now that being the case why would you deviate
from that ever why would you not want to stack the deck as much in your favor as
humanly possible and don’t worry I already know the answer for most of you
and that answer is you like that quick money you like the thrill you like being
on top of the market the day trading aspect of things and that’s fine you do
you but I’m telling you right now if you want the best chance of winning
which is what Thomas is asking me the daily chart is far superior to
everything else in this regard now the second reason that the daily chart is
the far superior timeframe to use is you don’t have to be a slave to the markets
you get your time back you get your life back I cannot remember the last time I
spent more than ten or fifteen minutes trading
currencies on any given day I alluded to this in episode one you guys know I live
in Las Vegas which is on Pacific Standard Time and the end of the trading
day is 2 p.m. usually right before 2 p.m. i turn on my charts I look at all
the currency pairs and the little algorithm little system I put together
tells me one of three things make a trade manage a trade I’m already in or
do nothing and move on and that’s what I do and then I’m done and then I go screw
off and do whatever I want after that so for those of you trading the five-minute
chart the 15-minute chart because you want to get in and get out and make that
really quick money, know this, you’re trading a lot longer than I am how quick
is that money really and for a lot of you who do scalp who do use those lower
timeframes you you know this as well as I do the market doesn’t always start
moving when you think it’s going to so there can be a lot of waiting and
sometimes there’s days where the market just never gets off the ground so you
did all that waiting for nothing I am so glad those days are over for me
a forex traders life can either be nerve-racking and horrible or it can be
blissful and wonderful and rewarding the choice is yours now I could really just
stop there those two reasons the fact that everything works better and you win
more often and that you can knock out a lot in 10-15 minutes a day and just get
on with your life I could easily stop there but I’m gonna keep going I’m gonna
give you more reasons why the daily chart is so superior to everything else
reason number three news events matter a lot less to you than they did before
holy shit how great is that now what do I mean by this well if you’re trading
smaller timeframes even news events on particular currencies that don’t even
have a lot of significance can knock you out of your trade instantly if they
don’t go your way or we’ve all seen this before the news event was actually in
your favor but for some reason the bank’s decided to take the opposite way
even though the news event was good and then you’re sitting there scratching
your head after a losing trade it’s a really helpless feeling and I decided a
long time ago if I can get those feelings out of my trading it’s gonna be
a lot better It’s gonna be a lot less to worry about because
I really don’t have any control over those news events I like things I can
control and I will never have full control over this market what I like
about it so much and the reason I’ve chosen to make a career out of this is
because forex trading is such a rare combination of things that I can
actually somewhat control the outcome of can you do that in stock trading not
really can you do that in gambling no can you do that in sports betting no but
if you do it right you can’t have some measure of control in forex trading so
why wouldn’t you do that and you do that by eliminating the things that you can’t
control and eliminating these small to medium news events is a great way to do
that and even as far as the bigger ones go get this if you’re technically on a
technical level going the correct way long or short in a particular currency
pair even if a bigger news event does not go your way you can absorb it
meaning that more often than not if your technical analysis is right and let’s
just say the price of the pound dollar was supposed to be going shorter and you
just received some negative news on the dollar a lot of times it’s not going to
hit your stop-loss and then in a very short amount of time he maybe even the
very next daily candle it’s gonna start going your way again to where if you
were trading a 15 minute 30 minute or even a 1 or 4-hour chart and negative
news came out on the dollar on a pretty big news event you’d be wiped out news
events are killers and if you can find a way to avoid most of them and be able to
sidestep most of them you’re halfway there I barely follow forex news and I
always have my Forex calendar right there handy so if any really big news
events are coming up in a particular currency pair I can make sure that I’m
not in the market when it happens or at the very least not in that pair and
trading the daily chart exclusively allows me to do that and if that’s not
enough reason number four and if you’ve watched my video on YouTube about the
big banks you will understand this the big banks of the world the people who
are responsible for moving price up and down employ traders that go to work
every day for the purpose of moving the market against the popular
side to knock those orders out and put that money back into their pockets so
they can redistribute it back in the market and make price go up or down they
do this over and over every single day now that being said which traders do you
think they fuck with more the 15-minute chart traders or the daily chart
traders it’s the 15-minute chart traders by far
for a lot of reasons one there’s a lot more of them and they’re trading all the
time which means there’s an endless supply of traders out there for the
banks to take from it’s the same reason why Vegas makes most of their money or
Vegas casinos make most their money on slot machines because there’s always
people there pulling that lever hitting that button over and over and over again
a regardless of how much they’re actually wagering and if you can avoid
being on the radar of the big banks that’s one less thing out there that can
ruin your trade so not only does everything work better on the daily
chart not only can you get everything done in 10 to 15 minutes and be done
with your day and live your life you have less news events to ruin your trade
and you have less influence from the big banks to ruin your trade these are four
reasons four gigantic reasons to trade the daily chart exclusively there are
traders out there you might even be one of them that are shying away from
trading this market but because you feel like you have to be on your computer on
top of the market all the time every day and you just don’t have the time to
commit to that well good news the correct answer was
the daily chart the whole time the correct answer was 15 minutes a day and
that’s all you got to do and I hope I’ve convinced a number of you to either make
that switch or start the right way from the very beginning of your trading
career now I did say at the beginning of the podcast that I would extend an olive
branch to those of you who are lunatics and love trading the 5, 15, 30-minute chart
and my message to you is this you can do both
meaning if you want to do that inter day trading do it
set up another profile on your charting software just for daily trades duplicate
all of the currency pairs you trade now with the system and the tools you have
on your charts and just set them all on the daily timeframe and then trade that
the same way you would a 15-minute chart I will bet you that over time your daily
chart trading is gonna outperform your inter day chart trading but if you got
something going really good on your 15-minute chart your 30-minute chart
keep doing it just do it my way too double-dip if some is good more is
better and if you guys like my approach to trading if you want to trade more
like I do but you still want to trade in a day you can do that to everything I
tell you is going to work on every timeframe it is just going to work on
the daily chart better so for your scalpers out there you intraday traders
don’t despair I hope you see it my way overtime but it’s okay if you don’t what
I say to you don’t use the RSI indicator use this instead you can easily do that
on the 15-minute chart too and see instant results now before we wrap this
up I did not mention the weekly chart that’s a longer time frame than the
daily chart right so it’s got to work better right no I don’t use the weekly
chart at all and to find out why check out the blog at nononsenseforex.com I
kind of gloss over that it’s towards the very bottom you can just scroll down and
see but if you’re sitting there wondering why I didn’t mention the
weekly that’s gonna be your reason why my goal is to keep this podcast under 15
minutes for you so you can go about your day and start trading and that’s what I
intend to do so hit the subscribe button give us a like on iTunes and nononsense
forex.com is pretty much mission central for everything you’re ever gonna
possibly need and I add to it all the time new podcast every week new videos
every week new blogs every week so as we cross that 15-minute mark I want you to
take the things that I’ve told you and go attack that market this week go with
confidence and go get it

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