Why Should You Trade Forex At The End Of A Trading Day?

1
104
Why Should You Trade Forex At The End Of A Trading Day?
Why Should You Trade Forex At The End Of A Trading Day?

Tiếng Việt Português فارسی

In my trading opinion, during the day, the Forex market always shows a big “chaos”. Prices often move quite “messily” with random strong fluctuations. It becomes quite chaotic and difficult to analyze clearly and accurately.

Based on where you live, you can figure out the way to trade at the end of a day through this article. For example, I live in Vietnam (GMT+7). When I wake up in the morning, it is the closing time of the New York session (GMT-5). Therefore, the tracking becomes very convenient. 

We all have our other jobs and problems we need to solve. Therefore, observing the chart after strong price struggles have passed, leaving a calm Asian session, will help us observe the market better and faster.

Register an Exness account NowGet $1,000 Free for beginners

Do your job normally

Trading at the end of the day basically helps you streamline your daily activities and work. Everything will still go normally without disturbance or influence. A lot of people think that you need to sit all day in front of a computer screen to be able to make money from the Forex market. This is not true.

In fact, not sitting around watching the market will bring you more benefits (in trading results). You can easily avoid excessive trading. You can also avoid bad effects from emotions when you observe the fluctuations in prices too much. Have you ever opened an order without intention but because of the sharp fluctuations of the day that make you greedy and risky? I bet that there are a lot.

One thing has been proven in practice: traders who trade with low frequency and carefully consider, make much more money than ones who regularly trade. They think buying and selling regularly will help them get rich the quickest. But the result is the opposite. They quickly burn out account after account.

Do your job normally
Do your job normally

With this type of trading, your daily life and work will not change. It only takes you about 30 minutes a day to observe the market and to take notes of main events if you want (I recommend that). You will become comfortable and serene when deciding whether to open an order or not.

The important thing is that you must have a good trading strategy, control of yourself, and a lot of experience accumulated over time. At that time, you do not need to spend many hours a day in front of the screen watching the market.

Minimize the chaos in the chart and your head as much as possible

People often tend to complicate things, especially with financial and technical issues. We often think it is something too big, too complicated. We complicate it more than it is.

I do not mean that trading is simple. We all know that making money from this market is extremely difficult. That’s why most traders lose money. I just think we’re making our own trading too complicated. The most difficult aspect of trading is to make a profit and not to let emotions affect.

When you have learned and mastered the skill of trading on price movements, you need to write these check notes as a trading plan (like the conditions to open an order). After that, your job is just to observe the price chart when the New York session closes (it is also the start of a new day when you wake up if you are living in Vietnam). Observe and see if the market gives you the opportunity to make money.

Minimize the chaos in the chart and your head as much as possible
Minimize the chaos in the chart and your head as much as possible

Once you get used to it, it only takes you about 30 minutes a day for trading. With that 30 minutes, you will decide whether to continue waiting for an opportunity or take the chance and open an order.

The reason traders are still struggling and frustrated with the forex market is that they have complicated what is considered the easiest part of trading. It is analyzing the market chart and looking for entry signals. The hardest part of trading is controlling yourself (psychology). The management of capital also depends largely on psychology. Spend 80% of your energy and focus on this and the rest 20% on market analysis.

Focus on time frames such as Daily chart (D1)

By trading at the end of the day, you are using your time more effectively and efficiently.

The daily chart offers a higher and more reliable value than ones of lower time frames (h1, h4). This means you should spend your time observing the market after the New York session closes via D1 and Week1 charts. We simply observe if the market has any entry points, make a few bullet notes, then go to work as usual. That’s all.

Focus on time frames such as Daily chart (D1)
Focus on time frames such as Daily chart (D1)

You can save time and avoid the bad influence of emotion and psychology. Compared to watching the market all day with quick ups and downs on the m30, h1, etc., the result is much better with my trading method. Feel free to try it.

Register an Exness account NowGet $1,000 Free for beginners

So, how do we trade?

Notes: 30 minutes a day is enough for you to monitor and decide whether to open or to manage an order on the forex market.

All start with signal(s)

You check your favorite currency pair(s) and look for signals with your strategy (see if the market has given you an opportunity to make money). Once you understand and master the method, you will do this very quickly and easily. It only takes you 10 to 15 minutes.

You observe the daily chart (Daily-D1) and look for signals that match the strategy. If there are no signals then this is not the time to risk your money.

Trading signal with daily chart
Trading signal with daily chart

Many traders make the mistake that they are impatient in making money. They keep observing the market. And even when the signal is not available (or unclear), they deceive themselves that the opportunity to make money has come. They ignore risks and often gamble with large sums of money. This is a trap that you can easily fall into. Remember that the hardest part of trading is controlling yourself.

Looking for Levels

Combine 1 signal with 1 level. If you find a good price pattern, the next thing to do is to look at the levels.

You need to draw these levels on the daily, weekly, and monthly charts. Levels here are the support and resistance. The stronger the level is, the higher the trust level becomes.

Identifying market status

You need to know if the market you are in has a trend (up or down clearly) or does not have a trend (struggling with a narrow margin, up or down unclearly).

If there’s a trend, check to see whether it is a strong trend (up or down definitely, with strong intensity) or a normal – weak trend (slowly up – slowly down)

Never trade unless the market has a clear trend (up or down).

Taking note reviews on the daily market

Noting down reviews on your favorite currency pairs daily into a notebook is a good way to have an objective view of each market. Write about what you see and feel. Turn this into an indispensable habit.

Note down reviews on the daily market - day trading
Note down reviews on the daily market

After noting down all your favorite currency pairs, read them all at least once. This gives you a better overview of each market (currency pair) and an overview of the global money market. Thereby, you can consider and see if there are any contradictions between currency pairs. You will always stay in a state of knowing (and understanding) what is going on.

This is one of the most important things which help me survive and earn money in this tough market.

When you’re done, remember “you’re done”

When you are done “checking” the market, you have 2 choices: to open or not to open an order. Either way, your next step is to shut down the computer. You only know what happens on the chart when you turn on the computer the next trading day.

This is to help you not to be affected by emotions (closing an order before touching the stop loss, or hurriedly closing and taking profit from a winning order, or even stuffing orders, etc.). In addition, it helps trading not affect your life and other jobs.

Leave the screen after opening the order
Leave the screen after opening the order

Let the market do its job. Before opening an order, place a stop-loss. It also means that you have accepted to lose that money (never cut the losses before the stop-loss. It is for the market). The next day when you open up MT4 software, it will be pleasant if your order is profitable. And if it’s at a loss, that’s okay. Before this, you HAVE ACCEPTED to lose the money before the stop-loss, haven’t you?

In a more casual way, you should not give a damn to it 🙂

 In short

This trading-at-the-end-of-a-day strategy is not only a suitable and very good strategy for you, but it is also a “philosophy”.

It is not to stick your eyes on the market and to accept that the market will do what it needs to do. The market is always right. And what you and I need to do is to stand on the giant’s shoulders.

Register an Exness account NowGet $1,000 Free for beginners

1 COMMENT

  1. Hi everyone, it’s my first pay a quick visit at this website, and article is in fact fruitful in favor
    of me, keep up posting these types of content.

LEAVE A REPLY

Please enter your comment!
Please enter your name here