How Much Time Do You Need for Successful Trading on Forex?

Hello friends!

How much time do you usually need to spend for studying charts and monitor the currency markets? I’m sure many of you at the beginning of his trading career was literally glued to computer screens all day, getting stuck on the charts, you drank large amounts of coffee and constantly placed the orders throughout the day, but is it the only real approach available to us?

In this article I will show you an alternative way of keeping track of your charts, using a variety of methods and tools to develop a much more expeditious, tranquil, and productive approach to trading. I will show you that you should not get stuck to the screens of your computers for all day, while still efficiently using your time.

Timeframes and currency pairs

The timeframes we use for work in the trading process determine the frequency of checking of the charts. Thus, it goes without saying that if you use day trading strategy (you trade on M5-M15 chart), you have to rate charts more frequently, than if you were trading on the daily (D1) timeframe.

I am not interested to work with any timeframe less than D1, and all my trading is based on daily timeframe. I had a period when I was trading on the 4 hours and even 1 hour charts — and now I’m not willing to give much time to Forex.

Your workload is also affected by the number of currency pairs you will trade, i.e. the number of currency pairs you will use for trading, the greater number of charts you have to analyze. This does not mean that you can’t work on more than 20 currency pairs at the same time, it just means that need a complete system with which you could effectively control every currency pair. Say when trading on M15 it is hard to monitor 20 currency pairs, but when you work on D1, it is quite convenient.

You can also resort to various tricks: for example, to alarm systems that monitor the appearance of the Setups and notify you.

Analysis

Over time you develop your own experience and the confidence to consistently and quickly analyze the markets. Knowing where and when you can “hunt” for trading and use the lower timeframes properly will help you to save a huge amount of time to view the charts. Having a clear idea of where you will look for price signals for opening positions, will allow you to plan and choose the desired position in advance and will prevent you from the need to monitor the markets constantly.

On the other hand, traders who carefully and for long continuous periods of time monitor the markets, can become a victim, opening the positions that they would usually considered unreasonable – this is probably due to the fact that the traders feel pressure because they HAVE to open positions to justify their sitting behind the monitor.

So, you need to know where and when to look for trading signals. For example, you trade the crossing of the 200MA, of course, if the price is very far from that average, you know that it makes no sense monitor the next ten candles in the terminal. And don’t waste your time and attention.

Price alerts and pending orders

Price alerts play a huge role in saving time required for analysis of the charts.

The principle of its operation is simple: once you have analyzed each currency pair you plan to trade, you can set signal alerts on the price level that you think is good for open positions specific to each currency pair. When the price reaches the desired level, a signal triggers and you get notification via email or text, then you can check out the pair at any signals of price movement.

Trading signals also play a role in position management: you can set price alerts of Stoploss, level of entrance, Take-Profit, etc… – this means you can leave your positions and make changes only when the price reaches your goals.

It is quite simple to set alerts in Мetatrader 4 :

1) Move the mouse on the chart to the area where you are interested in a price level and where you want to get the signal alert.

2) Click the right mouse button, choose ->Trading->Alert

3) Red dashed line will appear on the chart on the selected price level. If you click with the mouse twice on it, you can edit the alert, choose the method of notification, set the date of expiration, etc.

Trading signals give you the opportunity to move away from markets in the certainty that you are still constantly watch them and because they just help you to save a lot of time.

Trading in motion

Until the release of smartphones and tablets it was impossible for us to trade in motion, however, modern technologies and communication tools make trading in motion easy practicable process in fact. The ability to open and close positions or to reduce the stop-loss, where ever you are, in general means that you do not have to sit behind the screens of computers for trading process. As a result, this led to the fact that traders now can trade almost wherever they like.

Getting all the latest information and being abreast of the latest developments with the current movements in the market thanks to advanced technologies and widespread access to the Internet freed the traders from staying in front of the screens of the computers and gave them a certain degree of freedom to which we all aspire to.

As each broker offers their trading app that you can download to your phone or tablet, trading now is quite versatile and affordable business that can be practiced anywhere.

You should have a trading routine

If you treat trading as a real business, you will realize that important and necessary issue is routine and appropriate working hours and understanding when to work and when to have a rest. It is very easy to get involved in the markets and feel like you need to track the charts 24/7, not to miss a single trade. This is a dangerous habit that you can develop, because too active participation in trading process can easy burn and frazzle you.

If you find that the markets begin dictating you their way of life (a classic example of this is the moment when you don’t go to bed all night just to get the right moment to enter the market), then you are too deeply immersed in the trading. You should know when to disconnect from the process of trading, turn off charts and have a good night’s sleep.

Be sensible, set your working hours and stick to them, even if trading is your main activity, set the certain period of time for daily trading when you will work in the markets and try to consistently adhere it.

Take the days off

It is necessary to arrange for a day of rest from trading once a week. Don’t read forums, don’t learn strategies, don’t view charts, and don’t test expert advisors. Anything associated with trading.

It is best to go to nature, go for a walk in an unfamiliar place, read fiction, go to the theatre, and spend time with family or friends.

Such “days of discharge” help our brain to rest, to process the accumulated information and experience, to work with increased productivity in the future.

 

Do you spend too much time on analyzing of charts?

The purpose of this article is to show you how flexible trading can be and that you do not have sit behind the monitor, working 24/7 to get results. Even if trading is your main occupation, it can be planned in parallel with your other activities. It should not look like “all or nothing”, because the Forex market allows us to choose when to trade so you can properly set your trading hours that meet your own needs.

You can’t ignore the fact that you should spend a lot of time to study aspect of trading on the Forex market for implementation of successful trading, but once you have gained the necessary skills and confidence in your own skills, you actually will need significantly less time for directly trading itself.

Trading may even seem something boring, but this only happens because you just understand and accept what the markets are actually and realize that this is not a game, just business.

The main purpose that attracts people to trading is the promise of financial freedom and an attractive lifestyle, but the trade can produce the opposite effect and sometimes can become an obsession, completely debilitating trader. You have to know when to work and when to play.

Setting of schedule/trading hours brings into your daily life routines necessary for every trader to maintain a healthy and productive workload.

Time is a very precious commodity in our modern life. Day is full to the brim with lots of other obligations and affairs, and wise time management is a key success factor.

So, if you find that spend too much time on the analysis of the charts, there are things you can do to reduce your trading activity – it will give you freedom to step away from the screen. These factors include the following:

1. The use of price alerts and pending orders are likely to be the most important factor in saving of your time.
2. Orientation to higher (day) timeframes, simultaneous and careful using of lower timeframe (depends on your strategy).
3. Having of scheduled trading hours that you should follow.
4. The use of trading applications that enable you to stay connected while away from your computer.

The use of these recommendations in the trade will allow you to keep contact with the markets, without sitting up in front of the charts all day long. What’s the point in watching charts if the prices of currency pairs are not in the area where you are waiting for the signal? Why should you waste your time watching price movements, if you are not going to trade in the near future?

Let the price do its thing instead; enter the market in the area where you are waiting for the signal – it will just be a time when you have to switch to charts and hunt pips.

Remember that you are the main figure (not the markets!) and you keep consistent and rigorous process of trading, be patient.

 

Price alerts and pending orders play a huge role in saving time required for analysis of charts.

Thanks to modern technology, traders can trade almost everywhere it is only convenient.

If you treat trading as a real business, you will understand the need for routine and appropriate working hours, knowing when to work and when to have a rest.

Take care,

Michael