TRADING MADE SIMPLE

Forex on the Daily Chart

Opportunities To Help You Forge Your Own Path To Success

Success Is Easy

There are only 3 colors, 10 digits, and 7 notes; it’s what you do with them that’s important.

Success Is Simple

Successful people do what unsuccessful people are not willing to do.

The TMS Trading Methodology

The trading strategies and methods TMS employs and suggestions to consider for your trading plan and goals.

Daily Charts

At TMS we exclusively use the Daily time frame for several important reasons.

Honestly, the part-time retail trader has little chance of making sustainable profits on smaller timeframes.

LifeStyle

Jim Rohn is quoted as saying:

Time is more valuable than money. You can get more money, but you cannot get more time.

Maybe you are or in the past spent your waking hours gazing at 5 or 15-minute charts trying to find “the signal” and winning system to find it fail and fail again. You find yourself confused, frustrated and become addicted to your computer screen.

That is not a lifestyle. That is slavery. It is no less an addiction than drugs and alcohol.

We at TMS believe that there is nothing more important than family and relationship and that trading the daily charts enhance those relationships.

Nail Fuller, the founder of Learn to Trade the Market is done an excellent article on why Daily Charts is the Holy Grail of trading for the part-time retail trader.

‘The Holy Grail Of Forex Trading Strategies’

Noise

For the most part trading and analyzing intraday charts not only causes the majority of part-time retail traders to crash and burn but brings confusion and frustration.

That is because intraday charts for the most part are just noise without any rhyme or reason for the movements. This is because not only are you dealing with your emotions, but also Brokers, professional traders, and the prevalence today of computer algorithmic trading. They have far greater insight into the market and can place transactions in milliseconds.

Here are some of the advantages of trading the Daily Charts.

  • Daily charts give the most important view of the market.
  • Less noise and false-signals than intraday charts.
  • Teach you that patience and discipline pay off in the long-run.
  • Trading daily charts is less time-intensive, gives you more free time.
  • Daily chart or end-of-day (EOD) trading allows you to fit trading in around any schedule.
  • Less chart watching and involvement means less temptation to over-trade.
  • Daily chart trading slows everything down and allows you to focus on one trade at a time, forcing you to become laser-focused rather than scatter-brained.

 

Low-Frequency Trading

Maybe when you first set out on your trading journey you have pictures of multiple computer screens and a belief that intraday day trading will make you rich quickly. The opposite for the vast majority is the truth.

Trading less often on a daily chart does not mean less potential for profits. It does give you the time to more selective and decisive in the trade you take.

Trade Entries

  • Daily Chart ONLY (New York Close Charts)
  • Previous day CLOSE or better price.
  • Always use LIMIT orders.
  • Mostly avoid the first hour of the trading day to allow spreads to normalise. FX Majors – spread less than 1 pip. All others less than 2 pips.
  • Take care on the first trading day of the week because sentiment may have changed from the weekend.

Trade With The Trend

A popular trading expression is “the trend is your friend”. This expression has stood the test of time because trends are critically important to any trading plan. Forex trendlines can be seen in almost any charting analysis due to their usefulness and simplicity. 

At TMS we only trade in the direction of a strong daily trend and direction of our proprietary indicators.

It is also important to us that the daily chart is “smooth” in appearance as opposed to some charts where price bars have many wicks.

EXAMPLES:

Where To Position Stop Loss

You can be tempted to place a tight or small stop loss on your trade as possible. But in so doing you are also increasing your risk of being stopped out.

You should consider placing your stop below the last swing high or swing low depending on the direction of your trade. Some traders also use the Average Daily Range or Average True Range to place their stops.

There is a very good article on why to use “wide stops” by Nial Fuller.

Why You Should Use Wide Stop Losses

At TMS we use the “MagicFibo” to both set our stop loss level and set our projected target levels. The MagicFibo uses an impulse wave projection technique based on harmonic wave convergence.

We use the MagicFibo stop level to manually take ourselves out of the trade if the daily bar closes above or below this level depending on the direction of the position. We place an emergency stop well below the swing high or low depending on the direction of the position.

We do this to avoid being taken out by the wick or tail of a bar.

At TMS we also use a Trade Manager so that the Broker or professional traders cannot see our stop and target levels.

If you succeed from the information provided please consider giving a donation which I will use to support our missionary work in Kenya and Uganda.

Chart & Typical Signal Examples

Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.

Gallery December 2020

Examples of possible opportunities for December 2020 with strong trends

Success Is Easy ....

Success is nothing more than a few simple disciplines, practiced every day. You too can use the Forex as a vehicle to your personal prosperity and lifestyle.

DISCLAIMER: Trading futures, options on futures, and off-exchange Foreign Exchange market (FX, Forex) is very speculative in nature, involves considerable risk, and is not suitable for all investors. Before participating in trading, you should carefully consider your investment objectives, level of experience, and risk appetite. Investors should only use risk capital when trading because there is always the risk of substantial loss. Most importantly, do not invest money you cannot afford to lose. Any mention of past performance is not indicative of future results. Account access, trade executions and system response may be adversely affected by market conditions, quote delays, system performance and other factors. Past results as represented in testimonials are not necessarily indicative of future results or success. Testimonials may not be representative of all reasonably comparable students. Trading involves a significant risk of loss and may not be suitable for all investors. RISK WARNING: Trading futures and foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your monetary objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your deposited funds and therefore you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent advisor if you have any doubts. Past returns are not indicative of future results.

Trading Made Simple is not an investment advisory service or provider, nor a registered investment advisor or broker-dealer. It does do not purport to tell, advise, or suggest which securities customers should buy or sell for themselves. Customers should always check with their licensed financial advisor and their tax advisor to determine the suitability of any investment. It should not be assumed that the methods, techniques, or indicators presented on this website will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. Trade set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

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