Forex Strategies

Strategy on the daily time frames. The pros and cons

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Good day, dear readers and visitor of this blog Deipara.com. In this article I want to talk to You about whether the strategy on the daily time frames some advantage before other trading systems?

And does it make sense to use a similar strategy in his trading? I can say straight away that strategy on the daily timeframe very different from other systems, thus representing a conservative style of trading. In General, conservative trading have as many followers and many opponents.

  • INDICATORS FOR THE FLAT

Of course, strategies for day intervals have their certain advantages, which significantly distinguishes such systems against their potential competitors.

Let’s start with the fact that such systems do not force the trader of lightning action. In contrast to the aggressive systems, where the weight of gold every second, conservative system for the daily timeframe a trader to assess every detail of the situation on the market, and only then take any decision.

In addition, using a long-term strategy on the daily timeframe, You will have no necessity to sit at a terminal all day long. Why is this happening?

The fact that when using the daily interval, the market situation does not change every half hour, moreover, sustainable trends on the daily timeframe can live six months or a year! Given this fact, even pointless, trading on the daily timeframe, to sit constantly at the monitor.

In fact, You only will need just 10 minutes a day to correctly assess the situation, to correct or to open new orders. It is especially suitable for those people who have day jobs and don’t have much time to devote to trading.

In addition, trading on the daily timeframe is more comfortable psychologically, and physically, too. Let’s imagine the average scalper! This is a man who sits at the terminal in the order of 6-8 hours, while it continuously monitors the market, makes trading actions.

  • A LITTLE ABOUT STOP LOSS

Let’s judge logically, when You so much time sitting at the computer and watch for deals, it is clearly at the expiration of that time, You obviously will not feel cheerful. Strategy on the daily time frames Rob You of such shortcomings.

In this case, You open trades and monitor them once a day, because it is constantly follow up with them is simply pointless! Of course, daily strategies can come not every trader due to his preferences, but they are definitely less taxing of a person in emotional and physical terms, which is a huge plus.
LEARN TO TRADE
First I want to talk to You about how global trends are formed at daily intervals. Let’s judge logically, the economic situation in any country or in the world as a whole has a significant impact on pricing.I’m not telling You that You must be a master of fundamental analysis, but specific knowledge in the context of this sector You should be!

Accordingly, You necessarily need to follow the most important economic indicators that have the potential to affect price movement. But if You look at the daily interval, ensure that global trends do not change often, a strong trend can live for months.

If You’re competent open positions in the direction of the trend, then rest assured that You will be able to earn a good profit with relatively low risks!

Very often, many traders are interested in which strategy to choose to trade on day intervals. Let’s be objective, a trading system very much, but not all of them have practical sense.

You know, friends, it always seemed to me that on the daily interval, there is no point to use a different display system. Why? For anybody not a secret that the indicators significantly lag behind the price, accordingly, You will have to enter the market is not at a bargain price.

In addition, significantly increase the value of stop loss, which to day intervals can also reach an impressive size. I have always been convinced that to day intervals should stick to indicator-free trading.

In particular, I consider it appropriate to use the levels of support and resistance together with Price Action patterns. Why this trading style? To begin with, that large intervals to determine not so difficult.

Even a new trader after a few months of intensive training will be able to define the levels on the daily interval. In addition, you can choose some basic Price Action patterns and when it appears near the strong levels of support and resistance to open certain transactions.

Of course, in the context of this question all depends on You, but personally, I think that trading without indicators will allow You to be more flexible, anyway, You will learn to see the market, to understand why the price is currently moving in one direction, and why it begins to unfold.

Again – this is just my subjective opinion, and all depends on You.

In conclusion, I want to note that the strategy on the daily time frames for those traders who can not physically allocate a lot of time to trade. Or, the trader has an impressive capital and does not want to expose yourself to serious emotional stress.

Agree it comfortable to trade when You understand that You do not need every five minutes to look in the terminal. You just open a trade and look in the terminal every day for ten minutes, agree – it is very convenient and comfortable in all respects.

But, on the other hand, if You as a trader tend to trade aggressively, then these systems are unlikely to suit You. In any case, the choice is yours!

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