A. What kind of Trader are YOU?
Basically, there are three different styles of trading:
1. Day Trader
2. Swing Trader
3. Position Trader
All of our indicators that we teach will help you to trade in any style that you
prefer.
If you are a day trader, you'll be watching your charts during your entire trading session, which actually can last only a few minutes or hours, taking smaller plays and profits and hoping to catch “the big one”. You'll be constantly entering trades, adjusting your trailing stops, and exiting. If you want to trade only a few
minutes or hours each day, you're better off using the 1 or 5 or 10 minute time frame. You can actually play any of the time frames, but you'll want to close out all positions by the end of your trading session.
You can daily catch 20 -100 pips by using the 1 or 5 or 10 minute chart, trading for just a few minutes or hours.
However, you must have very quick reflexes and the ability to quickly get into and out of postions, taking quick profits and closing losses quickly. If you are older and can't respond quickly, or you don't have a day job and can sit for hours trading, then you can do better with a longer time frame, like 15 or 30 minutes.
If you don't want to sit in front of your computer for a few hours but can watch your positions from time to time, you can swing trade. This is better done in the 15 or 30 minute timeframes. You'll need to check often to adjust your trailing stops, as your trades mature. You are still safer if you close out all positions
before the end of that day's trading session and hold no overnight positions.
You can easily catch 75-200 pips each day with little time actually spent watching your chart.
If you want to long term position trade, it's best done in the 1 or 2 or 4 hour timeframe. With the proper stops and limits in place, you can let your trade run overnight, or for several days, with only a few daily adjustments of your trailing stops and limits.
In any time frame, the danger area is at the beginning of the trade. This is when you're the most vulnerable, so it is really a question of monitoring the progress early on; once the trade has gone the right way, the trader can relax. In all cases, your first goal should be to move your stop to the breakeven position.
B. Ideas About Trading in the Different Time Frames
We sell a product that we call Day Trade Forex, but in reality, you can use what we teach to do any kind of trading you prefer. Each person needs to experiment with the different time frames and moving averages to find out what he/she is most suited for, time-wise and personality-wise. This takes time and lots of
practice and patience in your demo account.
If you have a J.O.B., then what we teach is perfect for you if you can trade during the busiest hours, between 3 am to 11 am EST. Even 1 or 2 hours of trading in the 1-5-10 or 15 minute chart will make you enough money for the day. You can do multiple scalping trades in the 1 and 5 minute chart, or one trade in the 10 or
15 minute chart, then go to work. If you get lucky and hit a breakout or breakdown, no matter what time frame you are in, you can make as much as 30 -100 pips in a few minutes!
YOU ONLY NEED 20 PIPS A DAY TO BE RICH!
See the chart at the end of the course that illustrates this!
Some people love scalp trading, which are quick trades in the 1 and 5 minute charts for small but quick profits; and some love day trading, mostly done in the 10 and 15 and 30 minute charts, which simply means you close out all positions before the end of the trading day.
If you do one or more trades in one day that rides the price up and down and you close each position out, that is called day trade swing trading. And some prefer swing trading over the course of several days or weeks, which I call position trading, mostly done in the 1 or 2 or 4 hour charts.
We personally scalp and short term day trade, which is really just one-day swing trading. If you use a 1 or 5 minute chart with a 20 pip initial stop loss with a 10-15 pip trailing stop after breakeven, and/or a 10-50 pip limit, you will do very well without big risk or staring at your computer screen until you fall asleep or go
blind! Our motto: get in, get out and go play!
The beautfy of this method is that you don't have to have your PC on all the time or be glued to it or worry about overnight positions. The trade-off is that the longer plays make more money. Again, staying with your trade in the beginning until you've moved your stop to a breakeven, is your first goal.
