Why It's Important To Trade Multiple Timeframe Currency Charts
Hi, it’s Andrew Mitchem here the Forex Trading Coach. Today is Friday the 25th of April. And I want to talk about the importance of trading multiple timeframe charts because I have an example of some trades that I have taken this week that would just really blow your mind in some ways because it just shows what can be done when you trade different charts.
5th Birthday Promotion – Discounted Course – 5th-9th May 2014
Multiple Timeframe Charts
Now with controlled risk, it means that it’s not the end of the day. Sure it’s not great but a 0.5% risk per trade. That was a 2% loss for me which is for me that’s plenty but it’s still controlled so it means I’m not losing my account and I can still get up and trade later on. However, the important point is this on the same day on Wednesday; I also took four trades on the four hour charts. Now one of those also lost and three of them made profit. So you take the 2% that I lost on the daily charts and 0.5% that I’ve lost on the one losing trade on the four hour charts and now all of a sudden I’m down 2.5%. Yet the three profitable trades on the four hour charts made me 2.9%, 2.9% and I ended up making an overall profit of 0.4% for the day which of course is a good result. So it just goes to show that I have 5 losing trades and I have 3 winning trades. By trading that multiple timeframes I didn’t trade anything else, I didn’t take any trades on the one hour chart or anything shorter I was pretty busy on Wednesday so I only traded and look at the daily charts and four hour charts, that was it. But I still ended up with a profit of 0.4%. Will do that every day that’s 2% for the week, do that every day of the month that’s 8% for the month. You can see how even with losing trades you can still end up having a really profitable trade in day.
Why You Need To Control Your Risk
Don't Trade Holidays
The other thing I need to mention today is Anzac Day, it’s a public holiday. It’s a memorial day here in Australia and New Zealand. I’m in New Zealand and also in Australia. It’s a very important day for us you know in New Zealand and Australia but the point that I want to make, it’s a public holiday therefore I’m not taking trades today on the AUD or the NZD currency pairs. In fact there are some really good setups especially on the daily charts; the Aussie and the Kiwi are both looking quite weak right now. And the rest are good setups but I’m leaving them because my rule is to say that if there’s a public holiday in a country then I’m not taking especially on the daily charts trades involving those country pairs.
Now if I’m looking at four charts, one hour charts and I see good setups and ideally looking to short, the Aussie and the Kiwi today then yes, I would look at taking those. But on the longer timeframe charts because there was a public holiday I’m not looking at taking for instance the New Zealand/US Dollar, or the New Zealand/Yen or whatever the setups are on the daily charts for today because there is a public holiday here the main banks and institutions within New Zealand here and also in Australia are away today so it just means that your normal trading conditions on the Aussie and the Kiwi pairs today won’t be in existence, so why take the risk on trading those on a longer timeframe chart?
So that’s what I wanted to cover for today’s video and podcast; some really important tips and information there. Like I said at the very beginning, if you have been sitting on a fence and you’ve been thinking about taking my help and joining the ever growing number of people who were being really successful for my course. Remember between the 5th and 9th of May, there's really good deal I’ve got for you. Never been seen before probably never will be repeated just for that 5 days. If you want to be in my mailing list to get exclusive information for that just drop me an email [email protected]
I look forward to talking to you this time next week.