Only Trade on the Close of a Candle

Podcast:

#372: Only Trade on the Close of a Candle

In this video:

00:25 – Knowing when to trade

01:01 – Simplify your trading

01:50 – Trade at the close of a candle

03:07 – Trading the right time frame charts

04:16 – Another +1.2% gain on Autopilot for TFTC Pattern Trader

04:56 – The price for TFTC Pattern Trader will be increasing soon

05:50 – Go to TFTCPatternTrader.com for more details

I'm going to explain why I only look for a new trade upon the close of a candle.

Let's talk about that and more right now. Hey, Traders, Andrew here at the Forex Trading Coach and welcome to video and podcast number 372.

Knowing when to trade

So I want to talk about understanding when you should look for trades, and at the end, I'll also give you an update on our hundred percent automated Pattern Trader Software, which has had another positive result again this week.

So, when to look for trades. It's really important because a lot of people get very, very confused. I had an email yesterday from somebody who said, "Hey, Andrew, do you ever look at a trade midway through a candle?" Very easy answer. The answer is absolutely not. Why would you? Because things are not set, things are changing all the time.

Simplify your trading

So in order to simplify your trading, not only in terms of your mindset, knowing exactly what to do, lower stress, having a lot more control in your trading, it also helps you to get away from your charts. Because if you know exactly when to look for trades, that can really help you with your longevity as a trader.

And the mistake that many traders make when they get into trading, and look, I did exactly the same myself when I started trading, is that people think that they have to sit there all day, watching every PIP move up and down. They're glued to their charts. And although it's quite exciting to start with when you start trading, realistically, you're not going to continue trading and have that love and that passion and enjoyment for your trading if you just are completely glued to your computer.

Trade at the close of a candle

So, end of the chart, or end of a candle, means a lot of things. It means that you have all your, if your trading indicators, have all your levels set, nothing's moving. Nothing's moving up and down and changing. It also means that if you're analysing strength and weaknesses that you can look at different pairs at exactly the same time.

So it means, for example, you can trade and look at, say, there's a bullish movement on the Euro/US Dollar. Is that because the Euro is strong or is it because the US Dollar is weak? And so therefore you can go to like the Euro/Yen, Euro/Aussie, Euro/Kiwi, Euro/Frank, and look through those to actually get a good analysis overall of what's really is strong and what's weak. So it helps you with that. It helps you massively with stress levels because, quite frankly, it takes all that away because you're not desperate to get into a trade and making mistakes with lot sizes and stop losses. Especially if you trade the way that we trade, where we use limit orders. So you're not even jumping in at the market straight away at that time anyway. It really allows you to focus properly and take good high quality trading decisions with accurate position sizes without having that stress like a lot of new traders do, for instance.

Trading the right time frame charts

Has also the benefit of allowing you to take advantage of the different characteristics, different movements within the market.

So what I mean by that is this. Sometimes you will see, for example, that the four hour chart trades might be showing some really good examples. On other days or other weeks, you'll find the daily charts are showing really good trade setups. And so by having the ability to only look at a trade setup at the close of a candle, for instance, you can look when the daily charts close and th...