this is the Forex Q&A podcast this is VP professional Forex prop trader here in
the United States and this is the podcast where I answer forex trading
questions that viewers want to know and how 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 me whatever you want as long as it's forex
trading related and I haven't answered it already I will get back to you within
48 hours way more often than not and if you like there's a little box there you
can check says I want my question on an episode of the Forex Q&A podcast and
that's how we create our shows through your questions now far more often than
not was so great about the answers I give you is these answers are not your
common stock answers you are going to get from most people who are out there
on YouTube or on Twitter or anywhere on the internet as far as forex trading
goes most information out there is consistently terrible if you have any
chance of really winning in this industry you need to go outside
conventional thinking over 99% of all forex traders never get to where they
really want to be in this constant sea of conventional thinking telling you to
do the same 15 to 20 things over and over again is what leads to this number
being so high if you would like to vault yourself into that fraction of a percent
that can actually get beyond this this is the podcast for you because these
answers you're not going to find anywhere else most of these people
online don't trade for a living they're not able to they can't get to that level
they're instructors they're news reporters and they're very good at doing those
things but if you want information from somebody who has actually gotten there
and you want to get there too this is the podcast for you now the question
here in episode 3 I love and as always I'm not just gonna throw an answer out
there and don't back it up everything I say whether it's on the youtube channel
No Nonsense Forex whether it's on the blog nononsenseforex.com or here on
the podcast I always back it up with everything I possibly can and the reason
I do that well there's a couple reasons one is to qualify what I'm saying, two a
lot of times when I give an answer to somebody there's a little bit of shock
and disbelief that goes on with the answer because either a it's not what
they wanted to hear or B it's not what they
expected to hear or C both so just like a good lawyer would I try to take
that answer and go point by point and explain to you why I feel the way I do
and why I think it's the right way to go so here on episode (3) let's go ahead and
get right into the question Thomas from the Netherlands asked this question and
by the way you can put your city on there too Thomas did not I will give
your city and your country some love here on the podcast if you like but he
asks which is the best time frame to trade Forex I want the best chance of
winning so by time frame if you're not familiar on most charting platforms you
can trade the five-minute chart at the 15 the 30 the 1-hour four-hour daily
weekly monthly just depends on what charting platform you have but those are
the most common and I like I like what he said at the very ends is the best
chance of winning yeah you hear me use this terminology a lot too winning and
losing I don't know what he meant by winning but I can tell you what I mean I
I don't mean win a trade when have you have a Plus money day or week or session
or anything like that when I say winning and I ask you are you winning in forex
what I mean is are you making consistent profit over and over to the point where
you go long term man you look 12 months after you started or 12 months after you
really started keeping track are you at a consistent clip percentage-wise to
where you can trade real money and make a good living off that or at least
adjust a living to where you don't have to work a job anymore or are you trading
at a good enough clip to where somebody can see this and say wow I want to hire
that person and bring them on my team or to a lesser degree are you increasing
and improving at a good enough clip to where you're gonna get there soon that's
winning if you're the type of trader who just wants to do this as a hobby that's
fine but almost everybody I talk to in a perfect world would loves forex so much
just like I do that they would love nothing more than just to be able to do
this exclusively and so that's where I'm trying to get you and that's where the
my answer to this question is hopefully gonna get you one day so my answer is
and it's not even close the best timeframe to trade
if you really want to win consistently is the daily chart and again it is not
even close now if you hate my answer don't worry stick with me I'm gonna
extend an olive branch to some of you who like to scalp and use smaller
timeframes but I'm gonna save it till the end let me explain why first I
believe more than anything that the daily chart is the far superior chart to
trade when you're trading Forex there's really four main reasons I'll start with
the first one these are really in no particular order but really the one I
like the most is on the daily chart everything you use every technical tool
you use works better and more consistently on the daily chart than any
other chart out there if you guys know my background you know that every single
day after work I would come home and test one two sometimes three or four
indicators over and over on every timeframe on every currency pair on all
different levels until I found something that either worked or I saw enough cases
where it didn't work that I would throw it away and move on and if there was one
constant in all of this research is that every single time the daily chart turned
out more consistent results than anything else even if you're using
horrible tools like trend lines or the RSI indicator they work better on the
daily than they do anywhere else in other words trades win more often now
that being the case why would you deviate from that ever why would you not want to
stack the deck as much in your favor as humanly possible and don't worry I
already know the answer for most of you and that answer is you like that quick
money you like the thrill you like being on top of the market the day trading
aspect of things and that's fine you do you but I'm telling you right now
if you want the best chance of winning which is what Thomas is asking me the
daily chart is far superior to everything else in this regard now the
second reason that the daily chart is the far superior timeframe to use is you
don't have to be a slave to the markets you get your time back you get your life
back I cannot remember the last time I spent more than
ten or fifteen minutes trading currencies on any given day I alluded to
this in episode one you guys know I live in Las Vegas which is on Pacific
Standard Time and the end of the trading day is 2 p.m. usually right before 2
p.m. i turn on my charts I look at all the currency pairs and the little
algorithm little system I put together tells me one of three things make a
trade manage a trade I'm already in or do nothing and move on and that's what I
do and then I'm done and then I go screw off and do whatever I want after that so
for those of you trading the five-minute chart the 15-minute chart because you
want to get in and get out and make that really quick money, know this, you're
trading a lot longer than I am how quick is that money really and for a lot of
you who do scalp who do use those lower timeframes you you know this as well as
I do the market doesn't always start moving when you think it's going to so
there can be a lot of waiting and sometimes there's days where the market
just never gets off the ground so you did all that waiting for nothing I am so
glad those days are over for me a forex traders life can either be
nerve-racking and horrible or it can be blissful and wonderful and rewarding the
choice is yours now I could really just stop there those two reasons the fact
that everything works better and you win more often and that you can knock out a
lot in 10-15 minutes a day and just get on with your life I could easily stop
there but I'm gonna keep going I'm gonna give you more reasons why the daily
chart is so superior to everything else reason number three news events matter a
lot less to you than they did before holy shit how great is that now what do
I mean by this well if you're trading smaller timeframes even news events on
particular currencies that don't even have a lot of significance can knock you
out of your trade instantly if they don't go your way or we've all seen this
before the news event was actually in your favor but for some reason the
bank's decided to take the opposite way even though the news event was good and
then you're sitting there scratching your head after a losing trade it's a
really helpless feeling and I decided a long time ago if I can get those
feelings out of my trading it's gonna be a lot better
It's gonna be a lot less to worry about because I really don't have any control over
those news events I like things I can control and I will never have full
control over this market what I like about it so much and the reason I've
chosen to make a career out of this is because forex trading is such a rare
combination of things that I can actually somewhat control the outcome of
can you do that in stock trading not really can you do that in gambling no
can you do that in sports betting no but if you do it right you can't have some
measure of control in forex trading so why wouldn't you do that and you do that
by eliminating the things that you can't control and eliminating these small to
medium news events is a great way to do that and even as far as the bigger ones
go get this if you're technically on a technical level going the correct way
long or short in a particular currency pair even if a bigger news event does
not go your way you can absorb it meaning that more often than not if your
technical analysis is right and let's just say the price of the pound dollar
was supposed to be going shorter and you just received some negative news on the
dollar a lot of times it's not going to hit your stop-loss and then in a very
short amount of time he maybe even the very next daily candle it's gonna start
going your way again to where if you were trading a 15 minute 30 minute or
even a 1 or 4-hour chart and negative news came out on the dollar on a pretty
big news event you'd be wiped out news events are killers and if you can find a
way to avoid most of them and be able to sidestep most of them you're halfway
there I barely follow forex news and I always have my Forex calendar right
there handy so if any really big news events are coming up in a particular
currency pair I can make sure that I'm not in the market when it happens or at
the very least not in that pair and trading the daily chart exclusively
allows me to do that and if that's not enough reason number four and if you've
watched my video on YouTube about the big banks you will understand this the
big banks of the world the people who are responsible for moving price up and
down employ traders that go to work every day for the purpose of
moving the market against the popular side to knock those orders out and put
that money back into their pockets so they can redistribute it back in the
market and make price go up or down they do this over and over every single day
now that being said which traders do you think they fuck with more the 15-minute
chart traders or the daily chart traders
it's the 15-minute chart traders by far for a lot of reasons one there's a lot
more of them and they're trading all the time which means there's an endless
supply of traders out there for the banks to take from it's the same reason
why Vegas makes most of their money or Vegas casinos make most their money on
slot machines because there's always people there pulling that lever hitting
that button over and over and over again a regardless of how much they're
actually wagering and if you can avoid being on the radar of the big banks
that's one less thing out there that can ruin your trade so not only does
everything work better on the daily chart not only can you get everything
done in 10 to 15 minutes and be done with your day and live your life you
have less news events to ruin your trade and you have less influence from the big
banks to ruin your trade these are four reasons four gigantic reasons to trade
the daily chart exclusively there are traders out there you might even be one
of them that are shying away from trading this market but because you feel
like you have to be on your computer on top of the market all the time every day
and you just don't have the time to commit to that
well good news the correct answer was the daily chart the whole time the
correct answer was 15 minutes a day and that's all you got to do and I hope I've
convinced a number of you to either make that switch or start the right way from
the very beginning of your trading career now I did say at the beginning of
the podcast that I would extend an olive branch to those of you who are lunatics
and love trading the 5, 15, 30-minute chart and my message to you is this you can do
both meaning if you want to do that inter day
trading do it set up another profile on your charting
software just for daily trades duplicate all of the currency pairs you trade now
with the system and the tools you have on your charts and just set them all on
the daily timeframe and then trade that the same way you would a 15-minute chart
I will bet you that over time your daily chart trading is gonna outperform your
inter day chart trading but if you got something going really good on your
15-minute chart your 30-minute chart keep doing it just do it my way too
double-dip if some is good more is better and if you guys like my approach
to trading if you want to trade more like I do but you still want to trade in
a day you can do that to everything I tell you is going to work on every
timeframe it is just going to work on the daily chart better so for your
scalpers out there you intraday traders don't despair I hope you see it my way
overtime but it's okay if you don't what I say to you don't use the RSI indicator
use this instead you can easily do that on the 15-minute chart too and see
instant results now before we wrap this up I did not mention the weekly chart
that's a longer time frame than the daily chart right so it's got to work
better right no I don't use the weekly chart at all and to find out why check
out the blog at nononsenseforex.com I kind of gloss over that it's towards the
very bottom you can just scroll down and see but if you're sitting there
wondering why I didn't mention the weekly that's gonna be your reason why
my goal is to keep this podcast under 15 minutes for you so you can go about your
day and start trading and that's what I intend to do so hit the subscribe button
give us a like on iTunes and nononsense forex.com is pretty much mission central
for everything you're ever gonna possibly need and I add to it all the
time new podcast every week new videos every week new blogs every week so as we
cross that 15-minute mark I want you to take the things that I've told you and
go attack that market this week go with confidence and go get it