Podcast:
Why It's Important To Trade Multiple Timeframe Currency Charts
In this video I want to talk about the importance of trading over multiple timeframe currency charts. Let me explain more details about that right now.
Hi, it’s Andrew Mitchem here the Forex Trading Coach. Today is Friday the 25th of April. And I want to talk about the importance of trading multiple timeframe charts because I have an example of some trades that I have taken this week that would just really blow your mind in some ways because it just shows what can be done when you trade different charts.
5th Birthday Promotion – Discounted Course – 5th-9th May 2014
The other thing I want to talk about just quickly first is a 5th birthday promotion between the 5th and 9th of May that I’m holding. Now the Forex Trading Coach is almost 5 years old. In that time, I’ve helped traders in 48 countries around the world, helped them with their trading and most of them have gone from being either break even or losing traders to being really successful Forex Traders. If you’d like more information about that, I’m holding a 5-day sale. A genuine 5-day sale to promote the 5th birthday of the Forex Trading Coach with a price offer that I’ve never had the course such a low offer price ever before and probably will never do again. If you’d like more details about that, either contact me andrew@theforextradingcoach.com or look out for the link that I’ll be placing on my website next week.
Multiple Timeframe Charts
So back to the charts and the trading; multiple timeframe charts, why do I trade them? Well, I can be a prime example. On Wednesday of this week, I took four trades and I suggested the four trades to my clients based off the daily charts. Now three of them were involving the AUD and all four trades lost. It doesn’t happen very often but from time to time these things do happen because trading is about probabilities, it’s not a 100% certainty. And so the Australian CPI news came out way lower than expected and completely against the forecast by the fundamentals and completely against where all the daily charts and the technicals were showing the Aussie was likely to be going. The Aussie was looking very strong at that stage and I was definitely looking for buying the AUSD/USD and there were three trades involving the Aussie Dollar but anyway all of them lost taken out over that news announcement.
Now with controlled risk, it means that it’s not the end of the day. Sure it’s not great but a 0.5% risk per trade. That was a 2% loss for me which is for me that’s plenty but it’s still controlled so it means I’m not losing my account and I can still get up and trade later on. However, the important point is this on the same day on Wednesday; I also took four trades on the four hour charts. Now one of those also lost and three of them made profit. So you take the 2% that I lost on the daily charts and 0.5% that I’ve lost on the one losing trade on the four hour charts and now all of a sudden I’m down 2.5%. Yet the three profitable trades on the four hour charts made me 2.9%, 2.9% and I ended up making an overall profit of 0.4% for the day which of course is a good result. So it just goes to show that I have 5 losing trades and I have 3 winning trades. By trading that multiple timeframes I didn’t trade anything else, I didn’t take any trades on the one hour chart or anything shorter I was pretty busy on Wednesday so I only traded and look at the daily charts and four hour charts, that was it. But I still ended up with a profit of 0.4%. Will do that every day that’s 2% for the week, do that every day of the month that’s 8% for the month. You can see how even with losing trades you can still end up having a really profitable trade in day.
Why You Need To Control Your Risk
