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If your forex trading is going worst, the way you don't want it to and you feel confused by the amount of market data bombing your brain every time you sit down to analyze the markets, you probably need to reconcile your trading strategy so that your primary focus is on the daily charts. If you are currently undergoing any of the following trading problems you will benefit significantly from making the daily chart your primary trading time frame: • Over-trading – Trading too much is the reason of indecision, greed, no trading plan etc. • Fear of trade – You feel unconfident to choosing trades, this results in you getting “stage fright” and not trading at all, thus missing out on some good chances. • Over-analyzing – You find yourself spending hours upon hours looking at numerous time frames and 15 different currency pairs. Eventually, you get tired and decide to enter a trade for no solid reason besides the fact that you have confused yourself to the point of weariness. • Habituate to trading – You find yourself habituate with the forex market and with your trades all the time, it’s starting to influence your work life and your family life, all the while you are still losing money. You wonder why you are losing money while pumping so much time into your trading. • Trading irregularly–You have some good weeks and then some very bad weeks that erase your good weeks. The best forex trading signal provider can help you in this regards. They will provide signals time to time to keep you on track. How to avoid of focusing on the daily charts can cause the above trading problems: • Over-trading – When you look at every time frame available to you, you are simply going to find more “signals”. This means you will trade less on the daily chart, but the trades you do take will naturally be higher-probability. So, in reality, you lose volume, but you gain the point when trading the daily charts, not a bad trade-off when you consider your hard-earned cash is at stake. There are good signals on lower time frames like the 4hr and 1hr chart, but you need to master the daily chart before you can have any chance at successfully trading the time frames below it. Summary: One of the main causes, why most traders fail to make money is because they are stuck in a circle of over-analyzing and over-trading on lower time frame charts. If you want to fast-forward your learning curve and learn to trade effectively as quickly as possible, check out the price action forex trading course here and learn more about daily chart trading with effective price action strategies.
Forex trading is an Art, not a Science. Every time when we trade there is no means a surefire guarantee of success. No trade setup is ever 100% perfect. Therefore, no rule in trading is ever perfect (except the one about always using stops!). But, these basic rules work well across a variety of market environments and will help to keep you out of harm's way. 2% risk for per trade This is the most common and most broken rule in trading. By setting a 2% stop-loss for each trade, you can control your impulsive behavior to save your account. Technical and Fundamental Analysis both are essential Both techniques are important and have a hand in influencing price action trading. Fundamentals are good at dictating the broad themes in the market that can last for weeks, months or even years. Technicals can change fast and are useful for identifying specific entry and exit levels. Don’t lose your winning trade Forex markets can move fast, winning position can turn into losses in a matter of minutes. There is nothing worse than watching your trade be up 50 points one minute, only to see it completely reverse a short while later and take out your stop 60 points lower. You can protect your profits by using price action trading and trading more than one lot. For a more effective result, you may do a price action trading course. Right timing with analysis In forex trading, successful professional traders not only need to be right in the analysis, but they also need to be right in timing as well. Logic wins; Emotion kills It can be a huge rush when a trader is on a winning track, but just one bad loss can make the same trade give all of the profits and trading capital back to the market. Logically focused traders will know how to limit their losses, while impulsive traders can't do that. To get a better understanding of trades, read Importance of Forex analysis . Eternally pair strong with weak When a strong currency is positioned against a weak currency, the odds are heavily skewed toward the strong currency winning. In forex trading, we always trading in pairs involves buying one currency and shorting another. Because strength and weakness can help traders to gain an advantage in the currency market. Risk Can Be Calculated; Reward Is Unpredictable Before starting every trade, you must know your pain threshold. You need to figure your worst-case scenario and place your stop based on a monetary or technical level. Nothing is guaranteed in trading. Reward, on the other hand, is unknown. When a currency moves, the move can be tremendous or inadequate. Importance of Forex analysis Summery We always make rules to stay safe at the end of the day. This basic rules can help you all the time if you control your passion in trading.