How to Trade Monthly Charts for Massive Reward:Risk Trades

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#586: How to Trade Monthly Charts for Massive Reward:Risk Trades

In this video:

00:25 – I’m too busy – how can I trade?

01:24 – How long does a Monthly trade remain in the market?

02:02 – When to trade Monthly charts?  

03:40 – 1to 5 trades show on most months.

05:00 – Register for our 16th birthday sale – click here https://theforextradingcoach.com/16th-birthday-sale/

06:41 – Blueberry Markets as a Forex Broker.

07:25 – Like, share and subscribe to receive notification of more trading videos.

Do you want to know how you can successfully trade just once a month off the monthly charts? Let's talk about that and more right now.

Hey, traders! It's Andrew Mitchem here, the owner of The Forex Trading Coach with video and podcast number 586.

I’m too busy – how can I trade?

So I get questions from people that say, look, I'm not interested in trading, you know, all the time staring at charts all the time. What can I do? Well, for me, and it's there for start to consider the higher time frame charts.

And the best example of that where you only need to look at your charts just once a month, will be trading off the monthly charts. Now, the beauty of the monthly charts is they contain so much information because obviously each chart, each candle contains one month's worth of information of price action. And the other great thing about that, because there's so much information that they tend to be one of the most reliable chart setups.

And you have to be aware that because they are monthly charts, you will find that trades will take potentially slightly longer to work out. But just think of it as a candle or a bar.

How long does a Monthly trade remain in the market?

In other words, if you were trading on, let's say, a four hour chart, you might expect they trade to last in the market maybe one, two, three, four bars. And therefore when you're trading on a monthly chart, it's no different. So you have to be willing to leave trades in and let the market and the price action do its thing. But the great thing about trading monthly charts is all you need to do is look at your charts just once a month, and that's on the last day or the completed day of the month. So, for example, for this month, we have, the 1st of May coming up on Thursday of this week.

When to trade Monthly charts?  

So on Thursday, the 1st of May, the Wednesday candle, which is the 30th of April, would have close. And therefore we can then when all those, candles close at, 5 p.m., New York time, when the candle is closed, the next month will open, which is the 1st of May.

And at that point, we can go and make our analysis on all of the closed and completed April charts. So we can go through the charts and scan through all the different markets. I scan personally through all the forex markets, the metals, the commodities, the indices, the cryptos. And I scan through all of them and it takes like ten minutes tops, to go through them all on the monthly charts and just to scan through, look at what setting up what has room to move for, potential for a new buy trade or a new sell trade for that month.

Now, because the, price action within a monthly chart is so much bigger, the way that I trade it just means that we get massive reward tourists. And depending on the actual trade itself, we'll get reward to risk some about 3 to 1 minimum through to about 6, 7, sometimes 8 to 1 reward to risk off those monthly charts.

Now, the issue is that some people will look at a monthly chart and they go, oh, I can't trade it because the stoploss is too big. That's not actually the case.