Thursday, June 29, 2017

How To Trade Forex For Working Traders

February 1, 2011 by  
Filed under Forex FAQ & Latest Post


In today forex faq, I will be talking about a problem that most working traders face. In fact, I have received emails from readers of this blog asking the same question.

Below is the question:

I’m looking for a trading system suitable for a working person. I have 2 hours each day before work available where I do my chart analysis. I have had mixed results but still haven’t found the necessary confidence in a system suitable to my situation.

For a working trader, the only problem that you face is the lack of time. As you are unable to look at the chart for long hours everyday, you will not be able to trade short term strategy like scalping.

I will suggest those of you who do not have much time to analyze your chart everyday to use higher time frames like the hourly, 4 hourly or daily chart. The good thing about using charts from higher time frame is that you have more time to prepare for your desire setup.

Let’s take the hourly chart for instance, each candle that you see on the hourly chart takes 1 hour to form which means that you can more than an hour to prepare your trade.

Another good thing about trading with higher time frame is the significance of the support and resistance. You need to know that the higher the time frame, the more powerful is the support and resistance level.

You can see that the price is being resisted by a resistance level on the 15 minutes but on the 4 hour chart, the price has already broken a major resistance and is now being supported by a support level. I can tell you that the price will most probably move up and break the resistance on the 15 minutes chart as it is harder to break the support on the 4 hour chart.

I must say that the market movement behaves like water; it will always flow through areas with lowest resistance.

Another good thing about trading the higher time frame is you will be able to grab more profit per trade. Some of you may think that you will also have to put higher stop loss which is not true.

When I am trading on a higher time frame, I will look for trading opportunity first and once I saw one. I will switch to a lower time frame to optimize my entry. With this method, you will be able to trade with smaller stop loss and higher profit which is how most traders trade with high risk reward ratio.

To trade the higher time frame, it means that you will have lesser trading opportunity which is something that new traders find unbearable. When I am new in this field, I always wanted to get into a trade everyday and this is a problem if you are trading with higher time frame.

I hope that I have answered your question and for those of you who have some input to share, do feel free to give your comment below

Upon constant request from readers of this blog, I have started a Forex Signal Service that will help you to trade your account using 2 out of the 8 strategies in my course.

If you will like me to trade your account for you and help you recoup back your previous losses or help you grow your trading account, you can take a look at my Forex Signal Service below

Click here for my Forex Trade Copier Service

For those of you who are totally new to forex trading, I will suggest that you read through this blog post that I have written for beginners

Forex Guide For Beginners

If you are interested to learn how I do my forex technical analysis, you can take a look at the post below

3 Must Know Technical Analysis Tips

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Comments

2 Responses to “How To Trade Forex For Working Traders”
  1. Tee says:

    Dear Kelvin,

    I had attended your presentation for Fibonacci.
    It shows high accuracy when we analyse the market using Fibonacci.
    I think most trader could face the same problem during entry especially.
    As like you mentioned 0.6, 0.5 and 0.318 is high support and resistance.
    If it happens that when the price bar hit the 0.6 fibonacci line, should we enter at the price at 0.6 line? What do you think?
    If trade for living, what lot size will you suggest?

    Best regards.
    Tee

    • Kelvin says:

      Hi Tee

      I hope that you find the course useful for you.

      My personal suggestion is not to enter a trade once the price hits the 0.618 level. You should wait to see if the level manages to hold the price, this means that you have to wait for the price to close and it is still held by the level before you enter a trade.

      As for trading for living, it depends on how much you need every month. It also depends on the amount of returns from your strategy. Let says that you have a strategy that can give you a return of 15% every month and you just need to make $3,000 every month for a living. You will only need to start an account with $20,000. It all varies depending on the above factors.

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