Trading Forex: Time Management is Key

Filed under: Learn Forex Trading |

Following on from our trade example today and the issue of time management being raised, I would like to talk about this issue in a little more depth for today’s forex-related article.

 
You might be forgiven for thinking that successful forex traders sit at their screens all day analysing the markets. But in fact, nothing could be further from the truth. Unless you are trading off of the lower timeframe charts (which is notoriously difficult), there is really no need to be watching your charts all day. Personally, I only look at the 4-hour and daily charts these days (as these offer the most reliable trading signals), and therefore, I only need to look at my charts once every four hours. My main analysis comes once a day at the close of the daily candles, when I reassess my support/resistance levels and do a general assessment of the market. However, this only take 10-20 minutes, depending on whether I am putting any orders in or not. Moreover, when I check the 4-hour charts every four hours, this only takes a quick 5-10 minutes, depending again on whether I am putting any orders in.

 

Therefore, the key is not to put vast amounts of time into looking at your charts, but rather, it is to be organized and to look at your charts regularly and on time. If you can do this, you will catch a lot of good trade setups. If you don’t, then you won’t lose anything as such, but you will be kicking yourself for missing a lot of good-looking trade setups, and your profits will be much slower. Therefore, I would say that one of the keys to success in the forex markets is time management, and if you can figure this out around your daily routine, you will have another step set on the road to success.

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