How Trading Results Can Be Improved Using Daily Charts

How Trading Results Can Be Improved Using Daily Charts

Submitted by adil on Tue, 07/01/2014 - 18:00

The Art of the Chart Starts Here!

Most of the Forex traders face problems such as too much unnecessary trading, fear of committing trades, wasting precious time with over-analysis, becoming too involved in trading or trading in a very casual manner.

How to improve trade results by avoiding problems in FOREX trading?

By using daily charts, you can evade all problems associated with FOREX trading. Let us see how daily charts help in FOREX trading.

Avoid over trading: Daily charts offer less signals meaning there will be fewer impulses to trade, this doesn’t mean you will be making less profits. The signals will be few in number but more accurate, so you will be making more profits with fewer trades.

Even with daily charts, you need a level of discipline and education on how to handle the data that come faster as compared to other charts. Avoiding unnecessary trades will give you more time to adjust and put extra efforts on improving concentration and focus.

Avoid fear of committing trades: Trading without a pre-determined strategy and a well-thought plan can lead to big losses of investing capital. These losses invoke a fear in traders who become suspicious and lose all confidence of spotting the right trading moment. If you want to be successful with trading FOREX, you need to cultivate a mentality based on patience and fueled by discipline. These qualities will help you in recognizing the best signal to contract a specific trade. With increasing triumphs, the fear will eventually subside and get purged from your mindset.

Avoid wasting time with too much analysis: As mentioned earlier, the signals provided by daily charts are few but accurate, using these signals successfully will increase your confidence and reliance on them. This is very important because it saves you time which an average trader wastes analyzing all available data. In FOREX trading, the more time you put into thinking, the less chances are left to make profits. If you have become familiar with daily charts and you have also formulated an effective trading strategy, you only need around 30 minutes to scout suitable trading opportunities.

Avoid addiction of being glued to charts: Be a sniper, not a machine gunner if you want success in FOREX trading. Using daily charts enable you to identify favorable opportunities, make trades and gain profits quickly with precision. Using charts with weekly or monthly time frames do not allow such rapid trading which leaves the trader glued to charts wasting time. This easily leads to frustration, anger and over trading – the machine gun style.

Avoid casual trading: Greater reliability of signals in daily charts ensures you make more money with less effort. When you start seeing results, you become more interested, focused and serious because you know the trading just got real! You will be spending less time with the market data which means there will be less chances of becoming fed up, losing focus and trading with inconsistency.

Make daily charts your primary time frame and you will get guaranteed success. You will be able to evade all the problems that every FOREX trader experiences, and become really successful.