Expand your time horizon to increase your chance of success.
Most new traders in any market fancy themselves as day traders, getting in and out of the market multiple times a day. They are under the impression that this style of trading is less risky because there is no overnight exposure. They also think that because their protective stops are close to their entries, they won’t lose as much money. But they also have something else in common; most of them lose money anyway. Would you like to increase your chance of success without really trying? Instead of trading off of the 1-minute or 5-minute chart, move up to the hourly chart to find your trades. In the FX Power Courses, we recommend traders start with the daily chart to identify the trend and then to move down to the hourly chart to find their entry and exit. Why? Technical analysis just works better on the longer-term charts. Each candle on a 1-minute chart represents the opinion of those few traders who happen to buy or sell in that 60 second time span. Each candle on a daily chart represents the opinion of traders from around the world who traded within a 24 hour period. It should come as no surprise that with a bigger sampling on the daily chart, it offers a more accurate feel for the mood of the market. As you move down to shorter time frames less than the hourly chart (i.e. 15-minute, 5-minute), the signals provided by technical indicators are much less reliable, which can increase the number of losing trades. So if you are comfortable with your approach or just developing one, try to trade off of the hourly chart. This one move can make a big difference in your trading results.