How to trade Forex when you are short on time
In This Video:
00:38 Common Misconceptions in Forex Trading
01:46 A Little goes a Long Way in Forex Trading
03:32 How my Methods have Benefited Me
I’ve got some great tips for you if you’re really short on time but want to become a profitable Forex trader.
So let’s get into that right now!
Hi traders, it’s Andrew Mitchem here, the owner of The Forex Trading Coach. Today is Friday, the 20th of March and in today’s video and podcast I want to talk about how you can become a profitable trader if you’re really short on time.
Common Misconceptions in Forex Trading
And in today’s society everybody’s short on time. You know, none of us have enough time in the day to do what we want to do and the problem is, when you start out as a Forex trader, everybody thinks you have to be sitting in front of multiple charts and screens all day long, CNBC going in the background; newsfeeds coming up all over your computer, newspapers – whatever it might be and that, in reality, is not what needs to happen.
If you’re working in a brokerage or large financial institution, maybe you’ve got screens and newsfeeds going all over the place but for most of us, the benefits of trading are we can trade from anywhere, we can trade from home, a holiday, wherever it might be. And so the reality is you don’t need all of that!
And the other misconception is people think they need to be watching charts all day long, waiting for every pip of movement and they’re scared to miss a trade here or there. And again, you don’t need to do that!
A Little goes a Long Way in Forex Trading
So there are two ways that I’d like to quickly discuss how you can best trade, and successfully and profitably, if you’re short on time!
1. The first method is you pick, let’s say, one hour per day and trade. And you say, “Right, at this time I’m looking for trades, probably on the shorter time frame charts such as fifteen minutes, five minutes, even one minute charts”, if you really want to – but you’re dedicating, let’s say, one hour of time, at a certain time of the day, same time of the day if you can, each week! And you’re saying I’m looking for shorter time frame charts within this time period.
2. The other method of trading, if you’re really short on time, and this is what I do is that I much prefer to look at the longer time-frame charts and at the beginning of each week, I’ll look on the weekly charts. At the start of each day, I’ll look on the daily charts. And so my day-to-day trading over the last two weeks where I’ve been extremely busy with other projects, like learning to fly a helicopter, is I’ve been trading for no more than thirty minutes per day and I trade at 5pm New York Time and 5am New York time.
At that time, 5pm New York time, I can look at the one hour charts, the four hour, six hour, eight hour, twelve hour and daily charts. At 5am New York time, I can look at the one hour, the four hour, the six hour, the eight hour and the twelve hour charts. It takes me about fifteen minutes each time – fifteen minutes at 5am and fifteen minutes at 5pm New York time, Eastern Standard – look through the charts and, thirty minutes, done!
How my Methods have Benefited Me
That’s it! And that’s all I’ve been trading over the last couple of weeks. Last week’s video and podcast I mentioned about the results there. This week, so far in four days, I’m up 2.7%.
So you don’t need to be spending hours and hours and hours to make really good returns. I’ve got some great software that I’ve had written; that my clients all have, that allows us to trade those charts that MT4 don’t offer such as like the six hour, eight hour and twelve hour charts. But if you have the ability to trade those different time frames then, by all means, look at them!
But the great thing is, and the important lesson from this, is that less is often more! And the less time that you spend trading the less trading you’re actually doing but the higher quality of those trades, then the more the results will be at the end.
And so as proof of that, I had a webinar this time yesterday, with my clients – you know, people just making amazing returns. I had a client over in Australia who’s made 40% return since starting with me in November on a live account. And that’s from daily and weekly charts and then some shorter time frames like the twelve hour charts.
So just shows what can be done there without needing to give up your entire day and your entire week from watching every single pip move up and down because, really, that’s not much fun!
So that’s it for now. Hope that really helps you. So if you do have limited time, there are certain times of the day that are better or not for trading. Pick those times, try and fit them in around your schedule – stick to that, be consistent, make great returns and be a happy trader.
So that’s it for now. This is Andrew Mitchem from The Forex Trading Coach, look forward to talking to you this time next week.