Why taking trading signals on daily charts can boost your profits? Millionaire trader mindset
Those of you who follow me for a long time know, that I prefer to take trading signals on daily chart. So, today I want to explain why.
Obviously, you will have not much trades during the month, but as you know (I think you know it already from your experience) quantity of your trades doesn’t have impact on your profits or to be more specified as John Bogle said: ”More you trade, less you make”.
Daily chart is specially great for traders, who feel like nervous wreck after placing a trade. The more filters you have to open a trade the less stressful trading will be.
You don’t need to stick to your computer 24 hours a day, analyze all information you can find over the internet.
Daily chart trading will give you much better ratio of risk to profit. Trading on 15 min time frame for example will always have higher risks. It seems like it will give you more trading signals, but a lot of them will be false. So, why to spend your time, money and nerves on it?
Besides, you need to keep your eye only on most important fundamental factors, that influence your market – for each market they are different.
What I prefer is to take trading signals on daily chart and to look for entry point at 1h or 4h chart in case of short term trades.
Besides, don’t forget about so called ”stop hunters”, they love intraday traders, using 15 min or 1h charts as basis for taking signals. Did you noticed how much traps are on these charts?
Talk to you next week about ‘holy grail’ of money management – don’t miss!