Should You Trade Everyday?
Should You Trade Everyday?
If you are new to forex and wonder if you should trade everyday, The answer is no. There are benefits and drawbacks to trading every day. The markets in forex tend to range a lot. In other words, price stay’s with in a certain dollar amount and can foe weeks sometimes months.
So how do you make money when this happens? well more seasoned forex traders will trade the range. going long on the bottom of price and short at the top. This is called range trading. But very hard to do when price is stuck for weeks on end.
You could trade the break of a longer time frame bar, such as the four hour. And grab as little as 5-10 pips and call it a day. I can’t make money on 5-10 pips….I beg to differ, I have a buddy that is all he does is get in and out grabbing 10 pips a day and makes around 400k a year.
Depends On Your Strategy
Are you a long term trader? meaning do you buy and hold? Or are you short term trader that gets in and out? This will determine if you should trade everyday. If your long term trader, then no. Do not trade everyday or every week. If your short term trader, it all depends on your strategy? If you can get in and out within a hour or so profitably then yes daily trading is for you.
If you are like my buddy who get’s in and out of the market, then yes. Scalpers are the ones who make really good money as well. Forex while you can buy and hold. It is not like stocks, price moves way to fast and your position could be wiped out in a flash.
In my 16 years as a trader, the easiest way to make money in forex is to scalp, I have seen some massive traders, who trade 100 lots at a time. In which if your new to forex. That is a thousand dollars a pip. Not to hard to make a good living like that now is it.
But, just as fast as they make it, they can loose it. One of the biggest traders I know say’s he does not give a damn if he blows a million dollar account. Because he knows he can make it back up.
Personally I would have a stroke long before that would happen to me.
In all the years I have traded, I still do not know what causes this to be honest. Not to sure if it is the broker just messing with folks. Or we just hit a price where buyer and sellers are ok with the price. Either way they are a pain in the ass for the average trader.
If your a scalper, then please feel free to trade. Me? I am a guy that tries and grab the big rip’s Like 2-300 pips and that in itself is hard to do I won’t lie.
I have my day’s when I scalp as well, get in grab 20-30 pips and back out. But for the most part if the markets are in a range I go onto another pair, or even spot metals.
Wins And Losses
If your wins in trading are better than your losses then do not worry you will turn your losses around. If they are equal, then you may be looking to cancel out some of the losses.
Just remember that all you need is a 55% win to loss ratio and good money management and you should come out ahead in the end.
But if your losses are more than your wins, you might want to find a different strategy.
David Is A Sixteen Year Veteran In The Forex World. He Gives His Advice On What Works And What Does Not.