6.7% Gain and The Importance of Trading Forex with a Broker Who Has a 5pm EST (New York) Start of Day
In this video:
00:42 6.7% gain just this week
02:00 Don’t just trade for the sake of trading
03:30 “Sunday Candle”- the problem with lots of brokers
05:51 Highly recommend 5pm Eastern Standard Time brokers
The Importance of Trading FOREX with a Broker Who Has a 5pm EST (New York) Start of Day
In today’s video and podcast, I want to discuss with you some fantastic trading results from this week plus also to stress the importance of why you should be trading FOREX using a broker who has a 5pm Eastern Standard Time (EST) start of day.
Let me share more with you right now.
Hi Forex traders, it’s Andrew Mitchem here from the Forex Trading Coach and today, is Friday, the 25th of July. There are two main topics for this video and podcast.
As I mentioned, some fantastic results.
The second is the importance of the correct charts.
Fantastic Trading Results
So firstly, let’s look at the results. Well, for me personally this week I’ve had a 6.7% gain on my account – just this week. Now that’s been helped by several longer timeframe charts closing, some trades on the monthly charts and also weekly charts. But also I’ve had a good week in terms of the daily charts and a few 1-hour charts as well. That’s been quite an interesting week because, you see, traditionally July is generally a very quiet month. A lot of the Northern Hemisphere public and summer holidays starting up and the market generally gets a bit thin. However, this year we’ve seen that throughout most of the years so far we’ve had a very difficult trading year with a lot of flat sideways, range-bound markets. And that continued even into the beginning of this week.
But then a couple of the days this week we’ve also seen some really good moves and of course that has really helped to close out some of those longer timeframe charts especially looking at Euro shorts and also looking at some Aussie longs as well. It has really helped with the trading results for this week. But it also goes to show that when the market is active and there’s a lot of price action, lots of opportunities; take them. The flip side of that is when the market is pretty quiet and there’s not a lot happening – “Don’t just trade for the sake of trading.” You don’t have to trade if there’s not much showing; don’t feel force to have to be trading in the conditions that aren’t suitable.
But as we’ve seen in the couple of days of really good price action, we can hope that, that continues into the rest of this month and into August and onwards later in the year. So that’s a great week considering market conditions.
+6.7% : I’m very happy with that.
The second thing I want to talk about and this affects all of us as FOREX traders. Please ensure that you use a broker who has the 5pm Eastern Standard Time, that’s New York time start of day on their FOREX charts and it’s very, very important. Unfortunately, most brokers don’t understand how important it is. If you have a 5pm Eastern Standard Time start of day, it means that the week, the new week opens at 5 o’clock (5pm) New York time on a Sunday evening and it continues right the way through until 5 o’clock in the afternoon, 5pm on a Friday – New York time; that’s Eastern Standard Time. When you have that, go and look at your daily charts and you’ll notice that your day charts, there are five complete candles or five complete bars within the course of the week. They all represent 24-hours each so they’re all equal length of time, equal value.
The problem with the lots of brokers is they have what I call, “Sunday Candle”. It has six days (the extra days) so they have six days within the week on their daily charts. What that does is it completely distorts your charts in any indicator that you use because as far as the charts are concerned, if you have a Sunday Candle that lasts somewhere between let’s say 1 and 3 hours. The chart thinks that that’s a complete day because it’s comparing apples with oranges, let’s say. If you have the correct charts, you’re comparing apples with apples because every day, every bar within that daily chart for the week has 24-hours in it. With the incorrect brokers you’ve got 5 by showing or all 4 complete bars showing 24-hours and 1 showing maybe 3-hours and maybe the Friday one showing 22-hours. So they’re not completely accurate.
What is also does is if you are the person who trades the 4-hour charts, you have distorted charts and they look different. When I’m looking at my charts; my charts go from 5pm-9pm, 9pm-1am, 1am-5am, 5am-9am and continue like every 4 hours.
If you use a broker let’s say that starts at 8pm (New York) time your charts on the 4-hour charts are going to go from 8-12, 12-4, 4-8 and etc. like that round the clock. So that means that your 4-hour charts will look different to mine. And of course if you are looking at candle patterns and where a candle closes and if it breaks through a pivot point or whatever it might be that you’re looking at. You’re comparing two completely different looking types of candle patterns.
So it’s really important in my opinion that you use a broker who starts their new week and every single day at 5pm (New York) time throughout the entire year. If you don’t have that, maybe it’s time to start looking for a different broker at least in terms of looking at your charts. You may still wish to continue with your existing broker for placing the trades but for actually setting up your charts and setting up your entries and exits, etc.
I highly recommend 5pm Eastern Standard Time brokers.
So that’s all for now. Hope that that’s been a really valuable lesson for you and I look forward to talking to you this time next week.
Bye for now.