this is the Forex Q&A podcast this is VPprofessional Forex prop trader here in the United States and this is thepodcast where I answer forex trading questions that viewers want to know andhow do I know what viewers want to know well they ask me they go to nononsenseforex.
com hit the ask VP tab and on that little contact form you ask mewhatever you want as long as it's forex trading related and I haven't answeredit already I will get back to you within 48 hours way more often than not and ifyou like there's a little box there you can check says I want my question on anepisode of the Forex Q&A podcast and that's how we create our shows throughyour questions now far more often than not was so great about the answers Igive you is these answers are not your common stock answers you are going toget from most people who are out there on YouTube or on Twitter or anywhere onthe internet as far as forex trading goes most information out there isconsistently terrible if you have any chance of really winning in thisindustry you need to go outside conventional thinking over 99% of allforex traders never get to where they really want to be in this constant seaof conventional thinking telling you to do the same 15 to 20 things over andover again is what leads to this number being so high if you would like to vaultyourself into that fraction of a percent that can actually get beyond this thisis the podcast for you because these answers you're not going to findanywhere else most of these people online don't trade for a living they'renot able to they can't get to that level they're instructors they're news reportersand they're very good at doing those things but if you want information fromsomebody who has actually gotten there and you want to get there too this isthe podcast for you now the question here in episode 3 I love and as alwaysI'm not just gonna throw an answer out there and don't back it up everything Isay whether it's on the youtube channel No Nonsense Forex whether it's on theblog nononsenseforex.
com or here on the podcast I always back it up witheverything I possibly can and the reason I do that well there's a couple reasonsone is to qualify what I'm saying, two a lot of times when I give an answer tosomebody there's a little bit of shock and disbelief that goes on with theanswer because either a it's not what they wanted to hear or B it's not whatthey expected to hear or C both so justlike a good lawyer would I try to take that answer and go point by point andexplain to you why I feel the way I do and why I think it's the right way to goso here on episode (3) let's go ahead and get right into the question Thomas fromthe Netherlands asked this question and by the way you can put your city onthere too Thomas did not I will give your city and your country some lovehere on the podcast if you like but he asks which is the best time frame totrade Forex I want the best chance of winning so by time frame if you're notfamiliar on most charting platforms you can trade the five-minute chart at the15 the 30 the 1-hour four-hour daily weekly monthly just depends on whatcharting platform you have but those are the most common and I like I like whathe said at the very ends is the best chance of winning yeah you hear me usethis terminology a lot too winning and losing I don't know what he meant bywinning but I can tell you what I mean I I don't mean win a trade when have youhave a Plus money day or week or session or anything like that when I say winningand I ask you are you winning in forex what I mean is are you making consistentprofit over and over to the point where you go long term man you look 12 monthsafter you started or 12 months after you really started keeping track are you ata consistent clip percentage-wise to where you can trade real money and makea good living off that or at least adjust a living to where you don't haveto work a job anymore or are you trading at a good enough clip to where somebodycan see this and say wow I want to hire that person and bring them on my team orto a lesser degree are you increasing and improving at a good enough clip towhere you're gonna get there soon that's winning if you're the type of trader whojust wants to do this as a hobby that's fine but almost everybody I talk to in aperfect world would loves forex so much just like I do that they would lovenothing more than just to be able to do this exclusively and so that's where I'mtrying to get you and that's where the my answer to this question is hopefullygonna get you one day so my answer is and it's not even close the besttimeframe to trade if you really want to win consistentlyis the daily chart and again it is not even close now if you hate my answerdon't worry stick with me I'm gonna extend an olive branch to some of youwho like to scalp and use smaller timeframes but I'm gonna save it tillthe end let me explain why first I believe more than anything that thedaily chart is the far superior chart to trade when you're trading Forex there'sreally four main reasons I'll start with the first one these are really in noparticular order but really the one I like the most is on the daily charteverything you use every technical tool you use works better and moreconsistently on the daily chart than any other chart out there if you guys knowmy background you know that every single day after work I would come home andtest one two sometimes three or four indicators over and over on everytimeframe on every currency pair on all different levels until I found somethingthat either worked or I saw enough cases where it didn't work that I would throwit away and move on and if there was one constant in all of this research is thatevery single time the daily chart turned out more consistent results thananything else even if you're using horrible tools like trend lines or theRSI indicator they work better on the daily than they do anywhere else inother words trades win more often now that being the case why would you deviatefrom that ever why would you not want to stack the deck as much in your favor ashumanly possible and don't worry I already know the answer for most of youand that answer is you like that quick money you like the thrill you like beingon top of the market the day trading aspect of things and that's fine you doyou but I'm telling you right now if you want the best chance of winningwhich is what Thomas is asking me the daily chart is far superior toeverything else in this regard now the second reason that the daily chart isthe far superior timeframe to use is you don't have to be a slave to the marketsyou get your time back you get your life back I cannot remember the last time Ispent more than ten or fifteen minutes tradingcurrencies on any given day I alluded to this in episode one you guys know I livein Las Vegas which is on Pacific Standard Time and the end of the tradingday is 2 p.
m.
usually right before 2 p.
m.
i turn on my charts I look at allthe currency pairs and the little algorithm little system I put togethertells me one of three things make a trade manage a trade I'm already in ordo nothing and move on and that's what I do and then I'm done and then I go screwoff and do whatever I want after that so for those of you trading the five-minutechart the 15-minute chart because you want to get in and get out and make thatreally quick money, know this, you're trading a lot longer than I am how quickis that money really and for a lot of you who do scalp who do use those lowertimeframes you you know this as well as I do the market doesn't always startmoving when you think it's going to so there can be a lot of waiting andsometimes there's days where the market just never gets off the ground so youdid all that waiting for nothing I am so glad those days are over for mea forex traders life can either be nerve-racking and horrible or it can beblissful and wonderful and rewarding the choice is yours now I could really juststop there those two reasons the fact that everything works better and you winmore often and that you can knock out a lot in 10-15 minutes a day and just geton with your life I could easily stop there but I'm gonna keep going I'm gonnagive you more reasons why the daily chart is so superior to everything elsereason number three news events matter a lot less to you than they did beforeholy shit how great is that now what do I mean by this well if you're tradingsmaller timeframes even news events on particular currencies that don't evenhave a lot of significance can knock you out of your trade instantly if theydon't go your way or we've all seen this before the news event was actually inyour favor but for some reason the bank's decided to take the opposite wayeven though the news event was good and then you're sitting there scratchingyour head after a losing trade it's a really helpless feeling and I decided along time ago if I can get those feelings out of my trading it's gonna bea lot better It's gonna be a lot less to worry about becauseI really don't have any control over those news events I like things I cancontrol and I will never have full control over this market what I likeabout it so much and the reason I've chosen to make a career out of this isbecause forex trading is such a rare combination of things that I canactually somewhat control the outcome of can you do that in stock trading notreally can you do that in gambling no can you do that in sports betting no butif you do it right you can't have some measure of control in forex trading sowhy wouldn't you do that and you do that by eliminating the things that you can'tcontrol and eliminating these small to medium news events is a great way to dothat and even as far as the bigger ones go get this if you're technically on atechnical level going the correct way long or short in a particular currencypair even if a bigger news event does not go your way you can absorb itmeaning that more often than not if your technical analysis is right and let'sjust say the price of the pound dollar was supposed to be going shorter and youjust received some negative news on the dollar a lot of times it's not going tohit your stop-loss and then in a very short amount of time he maybe even thevery next daily candle it's gonna start going your way again to where if youwere trading a 15 minute 30 minute or even a 1 or 4-hour chart and negativenews came out on the dollar on a pretty big news event you'd be wiped out newsevents are killers and if you can find a way to avoid most of them and be able tosidestep most of them you're halfway there I barely follow forex news and Ialways have my Forex calendar right there handy so if any really big newsevents are coming up in a particular currency pair I can make sure that I'mnot in the market when it happens or at the very least not in that pair andtrading the daily chart exclusively allows me to do that and if that's notenough reason number four and if you've watched my video on YouTube about thebig banks you will understand this the big banks of the world the people whoare responsible for moving price up and down employ traders that go to workevery day for the purpose of moving the market against the popularside to knock those orders out and put that money back into their pockets sothey can redistribute it back in the market and make price go up or down theydo this over and over every single day now that being said which traders do youthink they fuck with more the 15-minute chart traders or the daily charttraders it's the 15-minute chart traders by farfor a lot of reasons one there's a lot more of them and they're trading all thetime which means there's an endless supply of traders out there for thebanks to take from it's the same reason why Vegas makes most of their money orVegas casinos make most their money on slot machines because there's alwayspeople there pulling that lever hitting that button over and over and over againa regardless of how much they're actually wagering and if you can avoidbeing on the radar of the big banks that's one less thing out there that canruin your trade so not only does everything work better on the dailychart not only can you get everything done in 10 to 15 minutes and be donewith your day and live your life you have less news events to ruin your tradeand you have less influence from the big banks to ruin your trade these are fourreasons four gigantic reasons to trade the daily chart exclusively there aretraders out there you might even be one of them that are shying away fromtrading this market but because you feel like you have to be on your computer ontop of the market all the time every day and you just don't have the time tocommit to that well good news the correct answer wasthe daily chart the whole time the correct answer was 15 minutes a day andthat's all you got to do and I hope I've convinced a number of you to either makethat switch or start the right way from the very beginning of your tradingcareer now I did say at the beginning of the podcast that I would extend an olivebranch to those of you who are lunatics and love trading the 5, 15, 30-minute chartand my message to you is this you can do bothmeaning if you want to do that inter day trading do itset up another profile on your charting software just for daily trades duplicateall of the currency pairs you trade now with the system and the tools you haveon your charts and just set them all on the daily timeframe and then trade thatthe same way you would a 15-minute chart I will bet you that over time your dailychart trading is gonna outperform your inter day chart trading but if you gotsomething going really good on your 15-minute chart your 30-minute chartkeep doing it just do it my way too double-dip if some is good more isbetter and if you guys like my approach to trading if you want to trade morelike I do but you still want to trade in a day you can do that to everything Itell you is going to work on every timeframe it is just going to work onthe daily chart better so for your scalpers out there you intraday tradersdon't despair I hope you see it my way overtime but it's okay if you don't whatI say to you don't use the RSI indicator use this instead you can easily do thaton the 15-minute chart too and see instant results now before we wrap thisup I did not mention the weekly chart that's a longer time frame than thedaily chart right so it's got to work better right no I don't use the weeklychart at all and to find out why check out the blog at nononsenseforex.
com Ikind of gloss over that it's towards the very bottom you can just scroll down andsee but if you're sitting there wondering why I didn't mention theweekly that's gonna be your reason why my goal is to keep this podcast under 15minutes for you so you can go about your day and start trading and that's what Iintend to do so hit the subscribe button give us a like on iTunes and nononsenseforex.
com is pretty much mission central for everything you're ever gonnapossibly need and I add to it all the time new podcast every week new videosevery week new blogs every week so as we cross that 15-minute mark I want you totake the things that I've told you and go attack that market this week go withconfidence and go get it.
