Szeri Nos Biggs Insights: The One Trade A Day Forex Method
This is a second trading method that we occasionally use that calls for only 1 trade per currency pair. One of the biggest problems that traders have is over trading. We over trade when we get board, plus trading is a lot of fun and some of us thrive on action. We just have to be in the game. This is a system created to remedy those mistakes. This is a bold system that is momentum, trend and based on direction of the market. It is a system that can help you earn a living.
Let’s dig in. We are persons who are all about efficiency. Why make 10 trades a day when you make one and earn the same amount of money? Why slave in front of the screen trying to figure out what the market is going to do. Wwe believe that good trading is boring! I think this is very much a true statement. Guys who know what they are doing, trade systematically and they aren’t making a bunch of decisions on the fly. The more discretionary you trade, the poorer you will be. The human mind is a slave to fear and greed, these two things will eat you alive if you have to make too many in trade decisions.
As you can tell, this trading method has you trading less and making fewer decisions. It also has you trading a set percentage of your account. Traders who do not use money management lose their accounts. You do not want to change your trade size on every trade. Decide on a trading size and stick to it. Depending on leverage, I might risk 1 to 10% on a single trade but never any more.
We enter our trades by looking at the direction and trend of the daily chart, the 4 hours chart, the 15 minute chart, and the 5 minute chart. The daily chart will give us the over-arching trend of the market, the 4 hour will give us an intermediate idea of the direction of the trend, the 15 minute will let us know the immediate direction of the trend, and the 5 minute is used for making our trade entries.
We want all 4 of these chart time frames converging in the same direction. Each chart must be either bullish or bearish for us to make a trade. We aren’t trying to time the market on the 5 minute and waiting for it to go in a specific direction to make a trade, it must align with all the other charts. When everything is in alignment, we enter a trade in the direction of the trend. We use a stop loss and take profit to automatically manage our trades.
There will be times when we win and time win we fail. This is a very successful method that reduces some of the variance that is inherent to trading. Almost remember that on any trade, you start off with a 50/50 proposition, but our in train decisions can swing that ratio against us. This method doesn’t have any in-trade decision, it is set and forget.
