Hello,
I am so glad I found your blog yesterday.
I started trading on Monday and by Wednesday I had blown up my Forex account.
I did all the things the professionals like yourself tell us newbies not to do. I did not respect risk, I got greedy and somehow thought I was immune. Needless to say I have learned my lesson. Most websites will tell it’s best to trade the daily chart, but I find that I’m left with too much time on my hands.
I do not have a job so I have the time to analyse the charts all day.
I wanted to find out from you. If I trade the hourly chart, how long do I give the trade for it to work out? And how do I set my take profit?
Is a risk ratio of 1:3 logical trading the hourly chart?
I appreciate your assistance.
My Response:
Sorry to hear about the loss in your account…
Trading the daily chart is possible, but it can seem tedious, waiting for the right setup to present itself.
That’s actually how I began my journey in trading.
How much time you should allocate for a setup to pan out depends on the specific setup. However, if you’re trading supply and demand zones, the market should transition out of the zone within a few hours of entering… It’s difficult to pinpoint an exact timeframe, but five hours would be the maximum.
If the market hasn’t made any kind of move out of the zone five hours post-entry, it might be wise to close the trade.
Profit-taking also hinges on the setup and strategy.
If you’re trading supply and demand, I advise targeting the next opposing supply and demand zone as the point where you’d want to start taking profits.
If you’re utilizing a different strategy, aim for a risk-reward ratio of 1:5, not 1:3… The latter might be a tad low, considering you’re trading on the 1-hour chart.
Enjoy the rest of your day.
PAN.