TRADING MADE SIMPLE

Forex on the Daily Chart

Opportunities To Help You Forge Your Own Path To Success

The TMS Trading Methodology

WHY we exclusively use and trade the Daily Charts.

Daily Charts

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

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.

It’s not more trades that only increases the risk for loss, but more robust selections in areas of confluence coupled with a solid trading plan that will increase the potential for profit .

One area that retail traders can overlook is a sound money management and risk-reward plan. This alone can enhance your profit potential exponentially.

The risk-reward ratio that we use is a minimum of two times the risk. That means that we can have one winning trade and two losing trades and still breakeven.

Many retail traders make the grave mistake of not having a defined stop and profit target and thereby allow their emotions to rule their trading. When you let your emotions take charge you will find that you are closing winning trades too soon and allowing losing trades to run too long. (We will cover this more in the explanation of the trading strategy we use)

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. Intraday trading you are not only 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.

 

LifeStyle

Lifestyle is the single most important reason that TMS only trades the daily time period. Once a trade decision is made, the stop and profit target is set, and then simply “forget”.

If you are fortunate to live in a country like Australia, the New York session closes at 8 AM in the morning. Allowing for analysis and trade decisions by 9 AM the limit orders are placed and the remainder of the day is your own. Our strategy is “set and forget”. The MT4 trading platform alerts you when the trade has been completed.

Jim Rohn is quoted as saying:

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

Let’s face it, most of us are attracted to the Forex because we want to make a little extra money or freedom from the 8 to 5 job.

Intraday trading will only exchange one form of slavery for another. The Forex is a 24-hour a day non-stop market. If you are not careful you will find yourself spending your waking hours gazing at charts trying to find “the signal” and “the winning system”. Once you have placed a trade you will find yourself watching its every move on the emotional rollercoaster.

You find yourself confused, frustrated, and addicted to your computer screen.

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

The reason you started trading was the potential Of extra income and lifestyle, that you find yourself frustrated and losing money. Even the possibility of losing your relationships.

We here at TMS believe absolutely that trading the daily charts is not the only key to financial freedom, but will also safeguard your 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’

The TMS Trading Methodology

The trading strategy

No 1-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.

We use a combination of moving averages and old-fashioned trendlines to determine the direction of our trades. A simple rule of thumb is to look to the left of your chart window and then to the right of your chart window to see whether the price bars are sloping up or sloping down.

The Entry Signal

We use our own proprietary indicators to scan for potential entry signals. However, we are also looking for confluence to support our indicator signals.

Confluence support can include Fibonacci levels, hidden divergence, price support levels, whole number resistance, and price action. All the time ensuring that we are trading with the trend.

And the BIG ONE that many retail traders neglect. If it is true that 95% of retail traders lose, then make sure you trade in the opposite direction. DO NOT FOLLOW THE HERD.

You can get this information from below or on MYFXBOOK.COM.

When you trade intraday you just don’t have the time to do this analysis.

We look to enter at the price of the Previous day close or better using a “limit order”. It does mean that we occasionally miss an entry and if we do we do not chase the price. We accept that sometimes we will miss a trade.

Also, keep in mind that we enter a trade at the close of the New York session which almost always results in a spike of spreads. We therefore always wait until spreads normalize before we place an entry order.

As a guide, you should wait for the major Forex pairs to have a spread of less than 1 pip. All other pairs less than 2 pips.

 

The Exit

The no emotion, set and forget strategy that we employ means there are only three ways to exit the trade.

  1. At our stop loss level.
  2. At breakeven.
  3. At our target level.

For example, if our stop loss is 30 pips our target would be 60 pips so that we have the 2-to-1 risk-reward ratio. However, when price moves 30 pips in our favour we move our stop to breakeven.

Other than that we do not touch the trade but let it work itself out until it closes.

Rather than having to do this manually, we use our own Trade Manager which automatically moves to breakeven when the price is in our favour. Our Trade Manager also does not reveal our price levels to the Broker until the price levels are reached.

When you manually place trades with your stop loss and target levels, your Broker can see those levels. Some Traders get concerned that Brokers chase their stops. Our Trade Manager prevents that from happening.

Below is an example of our Trade Manager in the settings we would use for the trade scenario above.

 

Our TMS Trade Manager is available on a yearly basis for a small donation.

To determine our Stop Levels we use our MagicFibo which is based on Fibonacci levels. This will be fully explained to you in some of the examples that follow and also in the Club Pro portal for those of you who would like to join us.

Do Not Follow The Herd

One of the most critical facts that many retail traders overlook or bury their heads in the sand is most will lose their money.

Just do a Google search and you will discover that only 5 to 10% of retail traders break even or show a profit. Whereas the professional and corporate traders are 80% profitable.

Common sense should tell you that to improve your profitability you should trade OPPOSITE to the retail herd.

The other area were the professional or corporate trader excels is the management of their trades. They calculate their risk-reward before they enter a trade and stay with the rules of their trading strategy while in the trade.

There is no emotion attached.

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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.

Join The Club

If you are not comfortable locating these signal setups yourself, you can join us on a monthly basis for a reasonable donation.  Please use the Contact Form to signal your interest.

Information Club Members Receive

Disclaimer

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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Results

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Results: April 2021

 Results calculated on 1 lot USD.

DATEPAIRPIPS$PLRESULT
8-AprAUDCAD24$192.00result
9-AprUSDCAD3$30.00result
14-AprAUDCHF108$1,166.40result
15-AprCADCHF-15-$165.00result
19-AprAUDNZD-25-$182.50result
19-AprCADJPY-32-$294.40result
22-AprAUDCAD45$360.00result
22-AprNZDJPY-40-$368.00result
22-AprUSDCAD94$752.00result
22-AprCADCHF-15-$165.00result
22-AprCADJPY125$1,150.00result
26-AprAUDJPY85$773.50result
26-AprAUDUSD0$0.00result
26-AprCHFJPY140$1,288.00result
26-AprEURJPY120$1,104.00result
26-AprAUDCAD155$1,240.00result
27-AprGBPJPY115$1,058.00result
27-AprUSDJPY55$506.00result
942$8,445.00result

Results: March 2021

 Results calculated on 1 lot USD.

DATEPAIRPIPS$PLRESULT
1-MarUSDCHF73$788.40result
2-MarEURAUD0$0.00result
2-MarAUDCHF0$0.00result
2-MarEURCAD91$709.80result
9-MarGBPUSD52$520.00result
10-MarUSDCAD118$932.20result
11-MarEURJPY64$588.80result
12-MarCADCHF58$620.60result
15-MarEURUSD46$460.00result
24-MarCADCHF68$720.80result
24-MarEURCAD72$568.80result
25-MarCADJPY40$364.00result
25-MarUSDJPY38$345.80result
25-MarAUDCHF45$477.00result
25-MarEURJPY30$273.00result
795$7,369.20result

Results: February 2021

 Results calculated on 1 lot USD.

DATEPAIRPIPS$PLRESULT
1-FebCADCHF80$888.00result
2-FebEURAUD140$1,078.00result
2-FebEURCAD104$811.20result
2-FebAUDCHF80$888.00result
3-FebNZDUSD-42-$420.00result
4-FebAUDJPY66$627.00result
5-FebAUDUSD116$1,160.00result
5-FebGBPUSD136$1,360.00result
5-FebAUDCAD42$327.60result
8-FebNZDUSD0$0.00result
8-FebEURJPY106$996.40result
8-FebCHFJPY60$570.00result
12-FebAUDCHF40$444.00result
12-FebAUDJPY56$532.00result
12-FebUSDJPY40$380.00result
15-FebUSDCAD0$0.00result
15-FebEURCAD78$608.40result
16-FebNZDUSD0$0.00result
19-FebNZDUSD78$780.00result
19-FebUSDSGD0$0.00result
19-FebAUDUSD56$560.00result
19-FebCADJPY0$0.00result
24-FebUSDJPY40$376.00result
24-FebCADJPY62$582.80result
24-FebEURCAD0$0.00result
25-FebCHFJPY72$676.80result
1410$13,226.20result

Close Accordions

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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