Podcast:

The Daily Charts are great to trade

weekly video

In this weekly video:

00:25 – I’ve traded the Daily charts for the last 12-13 years

00:36 – Trading to make money

01:35 – It doesn’t need to take all day at your computer to be a full time Forex trader

02:10 – Don’t worry about using a big stop loss

03:16 – Reliability increases with the Daily charts

04:46 – Trade less with higher probability trades

I'm going to explain why I love trading the daily charts. Let's get into that right now.

Hi, Forex traders, Andrew Mitchem here, The Forex Trading Coach. This is video and podcast #212.

I’ve traded the Daily charts for the last 12-13 years

I'm going to explain about the daily charts, why I‘ve traded them for the last 12, 13 years, why they're my favourite time frame charts, why I believe you should have a look at trading them also. Now, let's start with the obvious thing about trading.

Trading to make money

Why we're all trading? Well, I supposed the real reason we're trading is we're making money out of trading. We're looking at making money from our trading.

The aim of trading is not to spend all day trading. It's not an aim to be sat at your computer all day long because what's the point. It's not the end result. The end result is to make money. Now, if you can do that by say trading the daily charts just once a day and it might take you 10 minutes, 20 minutes once a day let's say, then why would you not do that? Why would you want to sit at charts trading say 1 minute or 5-minute time frame charts for hour upon hour upon hour because you got high stress situations.

To me, the aim of course is to make money and if you can do it by taking not a lot of time out of your day, then that helps even better.

It doesn’t need to take all day at your computer to be a full time Forex trader

Not everybody wants to be what you call full-time trading as in like sitting and trading all day. I'm a full-time trader but I don't sit trading all day. With the coaching, I'm helping people as well but the daily time frames allows that.

Whether you're doing other work, whether you're tired, whether you've got kids, whether you've got other work to do, whatever it might be, by having the ability to trade for say, just a shorter time frame, a short amount of time per day, then that really has to help and of course, it is profitable also then that really makes it worthwhile.

Don’t worry about using a big stop loss

You've got little time taken, great trades, low stress, high reward to risk trades. Don't worry about the stop loss. A lot of people come to me and they go, “Hey, Andrew, you keep talking about daily time frame charts, how can I trade daily time frames because I can't afford an 80 pip stop loss,” let's say. That's where you need to think differently. Everybody can afford an 80 pip stop loss or a 100 pip stop loss whatever it needs to be. It's just that you need to reduce your position size.

Don't just think I'm taking a 0.1 lot or a one standard lot because I do that on every trade and therefore, if I lose on a daily chart trade, it's a massive loss. It's not. Every trade that you take should have equal risks, equal percentage risks. For instance, the way I trade and the way I teach, if I have a losing trade, I lose half of 1% of my account. It doesn't matter whether it was daily chart trade or a weekly or a five-minute chart trade. It's the same. Half of 1% is still half of 1% regardless of the stop loss of the trade. It's just the position size that gets adjusted.

Reliability increases with the Daily charts

Reliability comes also with daily time frame charts. I'll give you an example. Say, today, I'm trading a short position on the British pound/Australian dollar. Why? Well,