Hello there blog readers. Hello there forex trading colleagues. We have a flash news. There’s a forex break out on EURGBP going to the downside. This could be a long term trend after waiting a few months for the currency pair to finish its corrective waves (consolidation). Keep your stops in check. This could be a big winner and a trend up to next year.
Ahhh… After playing with different timeframes. I pretty much got the idea at what timeframe I’m comfortable with. The idea is this, it should match your personality. If you’re a full time forex trader who don’t want to miss every good trade that may come by, be a day trader that trades smaller timeframes (5 minute charts to 1 hr ). If you’re a more long term and just wants to take a time off after placing a trade consider becoming a swing trader (days to weeks).
I say this because I kinda mess up the timing of entry and exit. I hold positions longer even though im in the 5 minute chart, resulting in losses. I tend to close position on a winning trade too early on a longer chart (days) and the result, I don’t earn much money as I have to.
So knowing the right mix would give you the idea how long should you hold trades.