‘The Holy Grail Of Forex Trading Strategies’ – Daily Chart Time frames

cupLet’s face it, 95% of you reading this are probably not consistently successful traders, in fact, you’ve probably blown out a trading account or three by now. You probably enter a trade and then sit at your computer watching the market tick away or reading economic news for the next two hours, unable to think about anything but what “could” happen to your trade. Maybe you can’t even sleep at night because you are so addicted to the 5 minute chart and to watching every pip of price movement that all you can think about is the market. If any of this sounds all too familiar to you, it’s obviously time for a change; it’s time to start concentrating your trading efforts on the daily chart time frame.

You know how that old cliché goes about ‘getting what you’ve always gotten from doing what you’ve always done‘…well now is the time to make the change…the one lesson that I learned early on in my trading career that helped me the most, was that the noise and false-signals of a 5 or 15 minute chart (lower time frames) were simply not worth spending my time on or risking my money on. I believe that daily chart trading can be your “Holy Grail” in the markets, here’s why…

Trading the 5 minute chart (and other lower time frames) decreases your chances of success and is widely considered gambling:

I am going to tell you guys something right now that you may not have thought about before…you only need 1 big winning trade a month to be a successful Forex trader. Yup, that’s correct, 1 big winning trade a month.

How is that possible you might ask? Well, I’ll bet if you go look at your trading account history right now you might just find the answer yourself. You see, most of you are losing money because you are trading too often, and you are trading too often because you are fixated on over-analyzing the market, Forex news variables, and lower time frame charts (I consider any chart under the 1 hour to be “lower time frame”).

Some of you probably even know that this over-involvement with the market is why you are losing money regularly or struggling to keep your head above water. Yet, even though you know it’s keeping you from achieving success in the markets, you cannot break your addiction to trading lower time frame charts and over-analyzing the markets. But, the cold hard truth of the matter is that you will likely never be a successful trader until you first break this addiction…

Now, here is why I firmly believe that trading lower time frame charts is a waste of time and money.

trader2Trading a 5 minute chart stimulates the reward centers of your brain…it gives you instant gratification. Having patience and discipline to focus ONLY on the daily charts takes more effort from your more highly-evolved brain areas. So, what it really comes down to is that traders who are addicted to the lower time frames cannot break free from the instant stimulation they get when they enter a trade…even if it usually results in them losing money, because each time they enter the market, their brains are flooded with endorphins from the “thrill” of potentially making a lot of money really fast. So, the point here is that traders who are addicted to trading a 15 minute chart are actually addicted to the feeling they get from entering the market, and this means they are unable to use their more advanced planning and long-term brain areas effectively. It does not mean they are incapable of using them, it just means that they either don’t know they are addicted to trading lower time frames, or they don’t know how to stop it.

I have personally only met a few day-traders who make money consistently, and they almost all seem really frazzled and strung-out, like a junky who cannot stop thinking or talking about their drugs (the market). Sure, it’s possible to make money from sitting in front of your computer 8 hours a day staring at each tick, but why in the world would you want to? Let’s face it, watching the market tick away is not really that fun, NOR is it productive…at all.

Now, let’s get back to my main point that trading lower time frames is decreasing your chances of winning and destroying your trading account. To focus on daily chart trading you need patience and mental fortitude, this takes intelligence and forward-thinking, it takes checking your ego at the door, and it takes a realistic attitude. Anyone can go to a casino and get lucky a few times at the poker table, but why do you think it’s possible for some people to win at poker again and again and again, to the point where they make a living from it? It’s because they have taken a longer-term view and they realize that their success is not defined by any one hand of cards, just like your trading success is not defined by any one trade. So, if you want to turn your trading around, it’s time to swallow your need to “control” the market and for instant gratification, and begin taking a longer-term view of the markets by focusing on the daily chart time frame.

Nial, I don’t have enough money to trade the daily charts…

I get this email almost every day: “Nial, how can I trade the daily charts when I need to have wider stop losses and I don’t have a lot of money in my account, I can only afford to trade the 15 minute chart for now, then when I build up my account I will trade longer time frames”…

Many traders think this way, and it’s usually just because they don’t know enough about Forex trading position sizing or because they think by trading bigger position sizes on the lower time frame charts they are going to somehow make money faster.

So let me set this straight for you guys right now: Through position sizing, you can trade the daily charts just fine on a small trading account…you just have to trade a smaller position size. But, let’s face it, if you have a small trading account you should not be trading large position sizes anyways! You need to get rid of this attitude of “getting rich quick” and thinking that trading a 15 minute chart is somehow going to provide you with more opportunities to profit.

Here’s the deal…Yes, there are MORE trades on a 15 minute chart, however, there are also more false-signals and there is more random market noise, so you are just going to end up taking more losing trades and stressing yourself out more. This all contributes to a poor trading mindset and ultimately to you losing more and more money.

Look at this chart below of the daily spot Gold market. There was an obvious pin bar strategy from February 16th that we discussed first in the members’ forum and then in the free commentary from February 17th, as well as in the members’ commentary. This trade setup was clearly with the existing up trend, it was well defined, and formed near two areas of support….a ‘no-brainer’ for savvy price action traders like my members. The point is this…if you wait patiently and hit one big winner like this a month, you are doing very very well. My main trading philosophy is to trade Forex like a sniper, and this is a prime example of how that’s done:

Why you need to make the daily time frame your primary chart starting today…

• Daily charts provide more clarity

As I stated before, lower time frames are full of random market “noise” and false-signals, you will eliminate most of this noise by simply focusing on the daily charts. Focusing on the daily charts will also give you a clearer view of the overall market picture and will naturally improve your ability to read the market’s direction both near and long term.

• Daily charts help you develop a more effective and accurate market bias

Understanding the overall daily time frame bias of the market is very important for trading the daily charts and the 4hr or 1hr charts too. I do teach 4hr and 1hr time frame trading, but it’s crucial to master daily chart trading first so that you get a feeling of the underlying market sentiment. This goes along with developing your discretionary price action trading skill; you have to learn to “read” the market and get in touch with its ebbs and flows…it sounds a little cheesy maybe, but the market talks via price action, and if you “listen” closely enough to what it is saying you can understand where it is most likely to go next.

• Higher risk : reward

While the amount of money you risk per trade is a highly personal decision that depends on your individual financial situation, trading the daily charts can allow you to risk a bit more per trade than trading the lower time frames. Take note: I am NOT saying you should risk more per trade, I am saying that when you only TRADE 3 TIMES A MONTH (or thereabouts), you clearly can risk more money on one trade than if you are trading 30 times a month. So, this is an answer to the question “Nial, I can’t make as much money trading the daily charts as I can on the lower time frames”…yes you can because when you trade like a sniper you inherently enter far fewer trades each month than if you trade like a machine gunner, so this allows you to trade more lots per trade. However, keep in mind, this obviously only works if you can remain disciplined enough to not jump back into the market on revenge after you have a losing trade.

• Daily charts reduce the frequency with which you trade – slow and steady wins the race

slow-and-steady-wins-the-raceOne thing I firmly believe in is that Forex trading success is largely a result of the quality of the trades you take…not the quantity of trades you take. By simply reducing the frequency with which you trade, you will simultaneously improve your odds of succeeding over the long-term. You need to understand and accept the fact that 2 or 3 quality trades a month is going to put you much further ahead than 20 or 30 emotion-fueled impulse trades a month…no matter how good it makes you feel to take them. Remember, the tortoise won the fabled race because he was slow and consistent, instead of fast and full of emotion like the hare…

Shift your thinking (Take this stuff seriously)

Trading success is a direct result of the way you think about the markets. So, if you view the markets as a game of chance that you just like to “play around with” and you think you will make money by getting lucky every now and then…your trading account will quickly shrink in size.

Professional traders view the market as an arena to spot high-probability setups, setups that virtually “jump” off the chart at them; they then trade these setups and risk only an amount of money that they are 100% comfortable with losing. They also view the markets as a reflection of their own ability to control their emotions and actions in an arena of constant temptation…most people cannot do this consistently, and that’s why many people are bad at trading. It takes consistent control of your emotions and actions in the market to produce consistent trading results.

To shift the way you think about trading, you need to start getting excited about patience and about NOT trading…understand that the way you are thinking now is the way most traders think about the market…and most traders lose money…so if you can learn to do what most traders don’t do and think opposite from them…it goes to reason that you will greatly improve your chances of making money…

Making the transition into ‘daily chart’ price action trading

change-greensignNow that you understand why trading a 5 minute or other lower time frame chart is counter-productive to achieving long-term success in the markets, it’s time to make the transition to daily time frame trading. There is no sure-fire way to eliminate the temptation of the lower time frame charts, but if you re-read this article and some of my other Forex articles, you will reinforce the reasons why taking a slower and longer-term view on the market is the quickest way to making money as a trader.

The daily chart time frame is at the heart of how I trade and how I teach; my price action trading strategies and my overall trading philosophy revolve around taking a calm and stress-free approach to the markets. I know what I am looking for on the charts, if it shows up, I enter the trade, if not, I walk away from my computer.

The underlying point that you should take away from today’s lesson is that the more you push and “try” to make money in the markets by burning your eyeballs out staring at lower time frame charts, the more the money you so badly desire will elude you. Trading is an art, and like any art, it takes practice to become good at, but trading is a different beast because to excel at trading you need to take a largely “hands-off” approach, meaning you have to look at and study the markets a lot while actually “doing” relatively little (meaning not trading). Indeed, trading is the ultimate test of self-discipline and will power, and the more you develop these abilities, the more you will find that the profits you seek from the markets are not so elusive after all. If you enjoyed today’s lesson and want to learn more about developing a calm and stress-free approach to your Forex trading, check out my price action Forex trading course.

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About Nial Fuller

is a Professional Trader who is widely considered ‘The Authority’ on Price Action Trading.
He has a monthly readership of 250,000+ traders and has taught 15,000+ students since 2008.
If you want to learn more about harnessing the power and simplicity of Nial’s Price Action Trading Strategies checkout his Professional Forex Trading Course.   -   You can Contact Nial here.

Join the Discussion. Click Here to Leave a Comment – 126 Comments.

  1. benjamin ochola

    great advice nial

    Reply
  2. Keel

    Very sound and logical article. I sometimes wonder are there any 5min chart winners at all! It’s true that daily chart is more efficient than 5 mins but overall, market itself is not and that’s how winners cashout from losers.
    In relation to the article, the only time I ever made huge profit was buying and adding on to my long term position in silver from $37 to $49 more than 1000 pips and why it happened? Cuz one day I was tired of gambling and decided to long silver cuz it was a hot topic and the daily chart was bullish. I had no bs tight stops and bought very little amount. I added and added more while trailing the stop till one day my P/L was so attractive I took a screen shot of it :-)

    Reply
  3. Aaron

    Very frank, but the 1st sentence hit home with my experience. That’s why I like Nial’s approach in teaching. Being blunt is probably the quickest way to learn. To many it may seem like a slap in the face; but to many it’s very well needed.

    Reply
  4. Bartholomew Roberts

    Great comment Nial, the best Id never read on forums… since I began to trade with 1d, (I trade with 12 hrs as well) all was changed. I think some people will be able to trade properly just reading your post, and no time later like me! I will keep and recommend this site to newbies.

    Just please, the pic :(
    I know everybody says “The Holy..” but its really Holy :P

    cheers

    Reply
  5. Qasim

    Thanks Nial,you are the great like always Thank you

    Reply
  6. femi

    greatest write up about price action i ever read. thanks Nial

    Reply
  7. Alfred

    Excellent and Helpful article. thanks for sharing!

    Reply
  8. will dixon

    all the books Ive read and the videos I have watched has never sound this easy, I wished I knew of your knowledge when I was blowing money or should I say giving away money.

    Reply
  9. house for rent in philippines

    You are so cool! I do not suppose I have read something like this before.
    So great to discover another person with a few original thoughts on this
    topic. Really.. thank you for starting this up. This site is one thing that is required on the web, someone with
    a little originality!

    Reply
  10. Rai

    Excellent article thnks!

    Reply
  11. Brahim

    Great article, thankx for sharing.

    Reply
  12. Maine

    Very eye opening Nial. You are one of a kind. You are a straight shooter no bs no gimmicks. It is your true desire to help other succeed and not just sell a product that sets you apart. I have learned much from you free lessons videos and commentaries. I thank you Nial, and this is why I will be purchasing your trading course

    Reply
  13. joe

    great article Nial

    Reply
  14. Jerry Malik

    Hi Nial,

    Thank you so much for generously sharing your valuable knowledge. May God Bless you.

    I am a experienced and consistently profitable trader with over 5 years experience. Your article is 100% correct. I’ve seen “gurus” charge very steep fees to disclose such information.

    You are truly a rare gem who speak the the truth.

    Reply
  15. rajiv

    Very nice article nial

    Reply
  16. Agr

    fantastic article… playing around with 5 min and lower time frames chart is totally like wiping your account instant. I lost 5k in just a matter of 2 months.. so I am now really looking for long term horizon.. and yeah DAILY CHART is the holy grail.. people are still searching for the holy grail, but they don’ t know holy grail is just in their pc’s in the form of daily chart.

    Reply
  17. Polycarp. N

    Your articles are refreshing; Does taking trades off a larger time chart(daily chart) work for other markets like Futures and options charts.

    Reply
  18. jonathan jotex

    Nial,you’re so incredible.i’m a victim of lower timeframe,i was even trading this same lower timeframe while reading your article.i will keep reading this article to change my weak knowledge about trading (trading the lower timeframe).i enjoyed every bit i read here so i just have to leave a comment and say A BIG THANKS TO YOU Nial.Cheers

    Reply
  19. Dave

    You have just described my trading over the last 6 months. Can I make the switch (that I know I need to do)to the daily chart? The hard work starts now. Thanks Nial for your honest words

    Reply
  20. Rahim Aziz

    I have read 3 articles in a row and still love to read but have to sleep as per your training we need to maintain our decipline levels. Thanks much!!

    BR
    Rahim Aziz

    Reply
  21. Gabriel Delfin

    Thank you Nial, I was not wrong in monitoring trend trading thru daily time frame.

    Reply
  22. Norman

    Very good article Nial, i am feeling the same nowadays as well, thanks a lot for your sharing and hope i can be a trader like you in the near future…..fingers crossed ;-)

    Reply
  23. xiucui

    Thx Nail. Thx for the lesson. I totally agree on what u say.

    Reply
  24. James Absalom

    Sometimes all it takes is to have what we konw is the right approach in our minds alraedy put in front of us like this, to actually take action.

    Very good read!

    Reply
  25. Mrs Shelly Gupta

    Nice Lesson.

    Reply
  26. kartik c.

    it gives me such motivation and knowledge of your each and every article and chart,inspired me to do well in every trade. thank u very much.

    Reply
  27. Jennifer

    Great teaching Nial!!

    Indeed the state that we are in, is vital in our trading result.

    Reply
  28. Luca Lapenna

    Thanks Nial this has giving me a somewhat better direction

    Reply
  29. Christopher Lee

    Thank You for this valuable information!!!!!

    Reply
  30. Dhaanuka

    WE really really like your stuff

    Reply
  31. Ashraf

    Thanks Nail, I enjoy your blog.

    Reply
  32. Votuanfredo

    Thank you very much Nial…

    Reply
  33. william

    I agree with everything here. Thanks for that Nail. I want to know if you have a section where we can make question and you can answer this question. Exist this? Thanks again. William.

    Reply
  34. Mariano Jc

    Thank you very much. I may undertstand it.

    Reply
  35. Jude FX

    Nial,your teachings are just practical truths.
    Keep it up.

    Reply
  36. Bayanda

    Wow, what a nice sdiscipline to engage to such a learning process, will try to trade less.

    Reply
  37. femi

    Nial you are a rare Gem in the forex market community, May God continue to bless you.More Green pips to your trading.

    Reply
  38. mohsin

    i also have a game plan that looking like this and doing well with it before read this article.thanks

    Reply
  39. Lance Jones

    So simple yet so effective in the short space of time that I have visited this website a lot of my questions have been answered…

    I look forward to becoming a member so I can learn how to be a successful trader

    Reply
  40. emmanuel

    Nial,

    You r not just considered an Authority in Price Action…boy,you sure do preach with Authority on Price Action..let him who is wise listen n learn..glad l took the right steps towards you…you r a breath of Fresh Air in the complex world of FX trading…Cheers!!

    Reply
  41. E.C.

    Greetings, do you factor in any particular time of day? Meaning, do you look at the markets for morning and/or night trading, or have a preference for either? Thanks in advance :) EC

    Reply
  42. Kevin(Zach)Harper

    Great stuff Nial
    Totally agree with your excellent article
    A couple of small points I would like to add please
    It is possible to be a very profitable trader on the lower time frames…BUT…one must exercise the same sort of PATIENCE required for the Daily time frames (Don’t over trade)
    And ..the lower time frames MUST suit your personal makeup(Type of person you are)
    It is fair to say the larger time frames will not suit everyone, just as the shorter time frames will not suit many, many traders personal makeup….So to sum up what a great article and learning to trade the time frame(s) that suit Your personal makeup with PATIENCE is critical…
    Thanks again Nial
    Cheers Kevin(Zach)Harper

    Reply
  43. Jan

    Awesome insight into myself … and my flaws. Thanks!!!

    Reply
  44. Sofia

    Hi Nial

    One of your best articles, well done! It’s also one of the best pieces of advice currently on the internet in relation to trading.

    The daily time-frame is all that is needed for people to trade “for a living”. We just start at different starting points but the key is to accept your start position and begin to head towards the finishing line.

    There have been countless cases of retail (and professional) traders getting caught up in their emotions (greed in this case) and consequently blowing their accounts.

    In my humble opinion, position sizing stands alongside a traders strategy in terms of importance to being a successful trader. So few people touch upon this subject but all successful traders know the following when entering a trade:

    1. How much they are risking on this trade
    2. How much they are looking to make on this trade

    The above is only possible through position sizing on each and every trade. The novice trader will often trade 1 mini-lot per trade or there abouts but this does not make the above two statements true and hence the account does not grow according to expectations.

    Thanks again for your article and as you can see, you’ve touched a raw nerve for me as I firmly believe in the points you have raised and I don’t think the importance of the points are emphasised enough.

    Reply
  45. zare

    °\(^▿^)/°
    This is a great article and i think if some of the so called fx guru read this they will be submissive to enough to learn more

    Reply
  46. GlobalTrader

    Great, thx Nial, as ever…

    Reply
  47. darrell

    Thanks for the reminder and motivation to stay patient.

    Reply
  48. golfduke

    I’ve been trying many short timeframe strategies. They’re all gone wrong. But with daily charts, I get much better results. Stick on Daily!

    Reply
  49. Sudip Ahmed

    Hi Nial,
    Informative and useful article with some hidden truth. Want to learn more from you.
    Thanks

    Reply
  50. Trader1

    Hi Nial,

    I’m a believer that one does need experience before one will master something (there’s the rule of a thumb of 10000 hours to become a master). It takes some time to really come to the point to realize and to be at ease with your greedy mind to accept the truth that reducing trading frequency does improve your performance. Only enter the 95% trades and then go away…I hope that the people will sometime really see the truth of what your constantly saying.

    Reply
  51. yogi

    Hi Nial
    As always what a wonderful article. The same thing happened to me as what Chris pointed out in his mail. My “Guru” also told me trade 5min chart and I have experienced the consequences. The really bad thing about is that you are so addicted to it and struggling to come out of it. I think this will be a good lesson for traders like me.

    Thank you for your excellent teaching.

    Reply
  52. Dick

    Nial: Many thanks again for a g r e a t article. It should
    be read by all fx traders, new or old, and followed.

    Thanks!!!!!!!

    Reply
  53. Kartik

    Nial,

    A great article and a must read for all traders who think the money is in the lower time frames. Invariably most traders start out with the wrong mindset and it is those who are persistant with their education realise after time that 5-15 minute charts are the playground of gamblers and 4hour-daily charts are for traders. I started with the 5 minute chart several years ago and blew my account several times before I realised that patience, discipline and the ‘less is more’ approach in terms of frequency of trading is where the success lies. I trade twice a month on average. Happy Trading!!!!!

    Reply
  54. Samm

    Thanks sir nial..this’s one of my best articles ave read…patience,discipline.on the daily chart is the key…

    Reply
  55. Sonja

    Thank you so much Nial,
    brilliant article, as always!!!

    Reply
  56. ALAN KLEEGER

    It would seem logical if a person is going trade a daily chart, it would be helpful to look at a longer term chart say for example the weekly chart to know where one is at in the bigger picture, a 4 hour chart if one is going to trade a 1 hour chart to determine whether we are at resistance/supply or support/demand. For example, if we are looking at a daily chart to trade and we see that the weekly chart is near a support level in the long term chart, we might have to find that level on daily chart to see if their is enough room to trade it for profits.

    Reply
  57. Zahid Khan

    A great stuff. Thanks Nial

    Reply
  58. Fred

    Another great lesson,thanks Nial, you are an excellent Mentor.

    Reply
  59. John

    Simply Outstanding!!!

    Reply
  60. Vilem

    Greetings from the CZECH REPUBLIC.
    As usually a brilliant article. Anti scalping definition nicely sharpened there. I also appriciate the english writting stile of yours, the nice hidden humor you drop “between the lines” is always matching the case and hitting the point in the end, showing no mercy towards the run down scalpers. Thanks a lot for it and I am already looking forward for another catchy article like this. Price action setups forever.

    Reply
  61. Tony

    Sound Advice Nial’s, I wish that I would have taken your lessons two years ago when I first started. I agree that the daily time frames will keep me out of losing more trades than I should. I understand and will make good use of this lesson. Thanx Nial’s

    Reply
  62. Joe

    “To shift the way you think about trading, you need to start getting excited about patience and about NOT trading…understand that the way you are thinking now is the way most traders think about the market…and most traders lose money…so if you can learn to do what most traders don’t do and think opposite from them…it goes to reason that you will greatly improve your chances of making money…”

    If everyone gets this one statement from Nial, you understand what he is trying to teach…EXCELLENT NIAL!!!

    Reply
  63. AMIN MALIK

    HI NIAL Thank you so much. Your recommended”DAILY”timeframe
    is a sure ANTI-DOTE to unwanted losses.You are so honest in
    sharing your valuable knowledge.It speaks of your Nobility.

    Thank you once again.
    kindest REGARDS. AMIN

    Reply
  64. River

    Excellent article. Higher time frames foster discipline, patience and have a more healthy effect on us mentally. I also
    come from a poker playing background and to be successful you really do have to understand that its about the long term results. Anyone that goes for a quick fix, fast profits, instant gratification ultimately ends in pain. Forex along with poker offers all the pitfalls, highs and lows that any adrenaline junkie could ask for. You can make it hard or easy for yourself and trading the higher time frames is the easy route. Be kind to yourself and slow down and enjoy your wonderful life!

    Reply
  65. Bill

    Such good advice. I figured this out on my own after a year and a half of trading. Daily charts are the way to go but I still trade on the 4 hour charts too. Anyone can be successful trading price action strategy on the higher time frames. It is quite simple, trading forex is not as complex as most “gurus” want you to believe.

    Reply
  66. John Stanley

    I want to be a better trader and am looking forward to trying longer time frames. Thanks for the great advice!!

    Reply
  67. brad

    true stuff.I wish i read this year ago and listened to it rather thinking my plan would work.yeah i made thousands in one day greed and lack of knowledge soon lost a lot more than i gained wasting money hitting highs and lows.

    Reply
  68. Jose Pereira

    Nial it’s an honor to have you as my Mentor. All the time i review your articles better trader i become. The best thing about your articles and your course it’s that, with all this good information you give me, it alouds me to do my own plan, with my own ideas, on my own time.
    Thanks a lot Nial

    Reply
  69. Nitka

    another gem…:-) thank you!

    Reply
  70. A F

    Hi Nail
    Every day I am learning something. May God bless you and your family. the harvest is as ones sow. your harvest will be wealth, health and life long respect.
    I am in the way to be successful trader.

    regard
    A F

    Reply
  71. Muhammed Salim

    Nial… It’s a incredible lesson. I opened my account last month. Nearly 60% of my money lost because of what you say above. After that I focus higher time frame. And earn some moolah. It’s true what you said, but I am late….. (Sigh.. If you publish this one month before… I can make some sense.)

    Reply
  72. Gary

    Thanks, Nial…

    Coming from a die-hard day trader who trades from the 5 minute and 15 minute charts, I am convinced that you are indeed correct. I have been struggling to stay ahead as a day-trader for the past 8 months. I have 2 accounts – one was opened last September and the other this past December. The September account has an account balance of 3,100 (opened at 2,500), but the Equity in the account is only 1,100. That’s because I had to hedge alot of my trades to avoid losses I feel I did not deserve to lose. The same thing is happening to the December account which has a balance of 2,850 (opened at 2,500) and the equity is at 1,850 because of hedge positions. I work so hard at this on a daily basis, getting up at 2:00 or 3:00 in the morning and trading until noon and sometimes later. I feel like I am knocking myself out burning myself out trying to become successful at this business. The reason I put hedge trades on is because I am getting tired of blowing out accounts and accepting losses I don’t deserve to lose. Maybe it is time for a change to the Daily charts. Hopefully it will solve the problems I have been having, and get me back on the road to success. I love this stuff, and I have put alot of hard-earned money and time into it. I don’t want to give up on it, especially when it fits in to my personality so well.

    Reply
  73. RajT

    Awesome article, another Great insight and definitely soooooo much truth in what you say, I thank you Nial for really opening my eyes in this forex business.

    Reply
  74. kwaji

    The course is fantastic, it will help me to fix my shortcomings in forex trading.

    Reply
  75. bolly

    thanks over the pieces of information revealed

    Reply
  76. Kimbo4x

    Lots of wisdom here. I have been trading for 6 years — sure wish I had started trading Daily charts

    Reply
  77. Ken

    Nial is absolutely right. The daily and 4H time frame completely changed the game for me. This article is a winner

    Cheers mate!

    Reply
  78. Phil De Aquino

    Fantastic, you will help many of the would be fx traders. Thanks and keep up the good deed…..

    Reply
  79. Scott

    This is the first thing that I learned from Nial a long time ago, and it has paid and paid and paid ever since.

    Reply
  80. Seamus

    Great article Nial, I have been consistently profitable for 6 months now thanks to your methods!

    Reply
  81. Alex

    I Wouldn’t say I’m part of a 95% but I love reading articles like these to just bring myself back to reality and also home in on some psychology skills Nial has to offer. I think today’s article has re-inforced trading like a sniper! Instead of looking and trying to force opportunity in the market. Patience and Discipline is the KEY!! Thanks

    Reply
  82. Manjula

    Trading in daily charts with quality setups only, is the fastest way to earn from the forex market.So true this statement is.Thanks for your all insight Nial.

    Reply
  83. L A

    Yep…………….someone said above “lower time frames suck”
    Yep…………….suck the $ right out of your account.

    Some else above mentioned a Mantra. How about “Less is More”

    I really liked this article especially in the last paragraph, i.e., “you have to look at and study the markets a lot while actually “doing” relatively little (meaning not trading). Indeed, trading is the ultimate test of self-discipline and will power,”

    Reply
  84. Bhupinder

    Hi Nial,

    This is a great insight to trading, great lesson.

    Reply
  85. Mischa

    Thanks Nial. Great article as always. Really. I’m a member since a long while and still appreciate all your articles. Especially this one. You made my day. =) Thanks

    Reply
  86. Damian

    Another point against trading lower time frames that is not mentioned is that in any forex trade you have to cross the spread (usually around one or two pips depending on the pair) so the market maker/broker get their cut.

    If you are trading a longer time frame you might have 100 pip stop with a 300 pip profit target so crossing the spread doesn’t cost that much on a trade by trade basis. But if you have small stop of five pips with a 15 pip profit target that a spread of 1.5 pips represents 10% of your profits.

    Reply
  87. Josef

    Hey Nial,
    thank you very much for this article. Very enjoy that and agree in 100% – daily chart is the holy grail.
    All the best and have a fantastic weekend. :-)))))))))))))
    Josef from the CZECH REPUBLIC

    Reply
  88. Galen

    Hello Nial

    I started dancing with the lower time frames on a demo account and walked away with aching feet and my head spinning wondering what moves did I make. I now dance exclusively with the daily and on some occasions the 4hour charts and the steps which are given through your instructions allow me to sail acrose the floor.

    I sincerely appreciate your lesson
    so very much.

    Your Student

    Reply
  89. Galen

    Hello Nial

    I started dancing with the lower time frames on a demo account and walked away with acheing feet and my head spinning wondering what moves did I make. I now dance exclussively with the daily and on some occassion the 4hour charts and the steps which are given through your instructions allow me to sail acrose the floor.

    I sincerely appreciate your lesson
    so very much.

    Your Student

    Reply
  90. tony

    Controlling your emotions in an “arena of constant temptation”… great description of the markets.

    Another top article Nial, cheers.
    Tony

    Reply
  91. Gary Clarke

    Nial your articules always inspire me to be the successful trader I’ve always dreamed of becoming.
    I’m coming onboard with you shorting
    Gary (from Canada eh.)

    Reply
  92. Henry

    Thank’s Nial…
    It’s time to change my trading style…:)

    Reply
  93. King (LTTTM member)

    As a trader, I never traded any time frames lower than the 4hr chart. As a matter of fact, I discontinued using the 4hr chart and only focus on the daily about 2 months! Big improvement!

    In addition to trading the daily, try not focus on too many pairs!
    Each pair has it owns ebbs and flow and we need to know the market by listening and reading it! If we have to do this many pairs, we’ll lose focus!

    Thank you Nial for this article! A superb one!

    Reply
  94. Bakrafi

    This is a nice article and i think if some of the so called fx guru read this they will be submissive to enough to learn more

    Reply
  95. Mark

    i really appreciate ypur articles, i have blown my account lyk 5 times but this year i decided to only focus on the daily chats and thanks to your advise my account keep on growing and growing nyc1

    Reply
  96. ernie

    Good day Sir Since finding you I have figured out what you say is true. Trading is alot les stressful now, and guess what i make more money. I send every trader i meet to you. However only the ones with some brains embrace your style. The rest flounder even years later. Thank you for everthing

    Reply
  97. Wes

    Nial, have just finished the first paragraph and I had to post and say… Right on! While you can, and some do be profitable from only looking at smaller time frames, it is extremely tough. I know my fair amount of successful small time frame traders and I can say that every one of them knows exactly where the daily’s are before they pull the trigger on a five minute!!!
    Very nice post; now I’ll read it. (o:

    Reply
  98. greg

    Great article, especially the insights about the instant gratifications on 5min charts and its pitfalls, cheers, g
    ps. it’s better to go to a casino once in a while for a thrill..

    Reply
  99. daza

    hey nial

    I am so that person, or was, have been trying your methods out on demo acc. for a couple of months now, and slowly its getting there. Still have a bit of trouble reading the charts though, but am starting to get the whole “daily and 4hr time frame method”

    Good lesson

    Cheers

    Daza

    Reply
  100. Dave

    That last paragraph is pure gold.

    Reply
  101. CM

    Great article. Thanks Nial.

    Reply
  102. Mohammad Kavoshnia

    Thanks Nial,

    Now,after reading this article and having a quick look at the charts and price actions of some previous weeks I
    undestand that “daily trading”in FX market is the best appeoach for money making.

    Reply
  103. Pingwarrior

    It is so true. I started to trade forex 1 & half year ago. But the newbie of myself tends to trade a lot in 1 hour chart and eventually led to loses. At this time, I came across Nial’s course and try to practice his teaching in demo account for more than half year with profit. And now I bring it to live account and the result is the same – profitable. Now I trade very less, sometime I didn’t trade at all for 2 weeks. But I trade when there is obvious price action. With the price action, displine and patience, that’s bring me profit. I really love Nial’s teaching and other trades should follow this if you not yet a profitable trader. Please continue your good job, Nial.

    Reply
  104. Zsolt

    Hi Nial,

    An excellent article. I had a number of highly profitable trades by following your advice and trading off the daily (and sometimes 4H) charts and looking for pin bars.

    Cheers,
    Zsolt

    Reply
  105. graham

    Hello Nial,

    Priceless as usual.
    Self discipline control over your emotions and trading with a clear strategy will always bring better results long term.

    Less trades, less emotion equals better results.

    Regards

    Graham Pearce WA

    Reply
  106. Dominik

    Nial,

    Another great article and lesson to all traders out there and myself, it took me about 2 years to figure out what you have put in this article and apply it in my trading.

    Trading small time frames DOESN’T MAKE ANY SENSE AT ALL!
    It will just destroy you and your trading account…

    I trade off the daily charts only and I am happy if I enter 1 trade a month!

    All the best and good trading,

    Reply
  107. Nick

    Hi Nial

    I think a daily mantra is appropriate here:

    ” I am a great trader, who only trades Daily charts”

    Thanks for reminding me that lower time-frames suck!!!

    Reply
  108. KRISTOFA OKENTA

    Dear ‘Prof Forex’. You have hit the nail on the head once again. Thank you for this nugget. For the past one month and over I have maintained my trading account with a profit for the first time in two years. This is because I have followed you and your teachings up religiously. I feel a sense of pride now because I have not blown my account within a week. Instead I am trading with over 100% profit within a month. Dear ‘Prof’, the credit goes to you. Thank YOU.

    Reply
  109. Richard

    I have enjoyed reading your article about trading daily time frames as against very short time frames. Why can’t most other trading coaches be so honest and generous with their knowledge. Nial, it was well written and should turn around many FX traders from losses into potential profit without the stress attached.

    Richard

    Reply
  110. Aram

    Your lessons are wonderful, I am trying to follow your advice on discipline and Have found that this is a major to success in fx trading

    Reply
  111. joe

    nice reading Nial and so true

    Reply
  112. peter

    Another good class today and i believe some is gaining. Kudos!

    Reply
  113. Nemanya

    I respect all the Nials rules and I am amazed when I look in my trading journal.
    The first year of trading and I am constantly positive. My best investment is price action trading course !

    THANKS Nial!
    Best regards!

    Reply
  114. Aubrey

    Thanks for the info Nial, at the end of October 2011 i decided
    that i would only day trade, if i had stuck with that thought
    i would of increased my account by the end of December by
    17K instead i lost 2K trying to trade the 5m set up.

    Reply
  115. banjo deniyi

    all your article are very educative and always hitting the nail on the head with what l have read now my loosing time in forex is over thank nial

    Reply
  116. hart

    You have put it in a nutshell…..cleraly and effectively.
    1. I really enjoyed reading it.
    2. I enjoyed reflecting on my own trading pattern.
    3. And realized why I have less stress lately tahn when I
    used to trade lower time frames.
    Day and 4 hrs are what I do now.
    Thanks Nial

    Reply
  117. jamal jber

    Good job
    Many thanks
    You are fantastic
    jamal jber

    Reply
  118. jasper

    So true that you can risk a lot more when you only take the most obvious signals on a daily timeframe. In fact, you will get rich quicker by trading the dailys mainly and spending the rest of your time on something you really like. In the end, trading is pretty boring. Find your edge, take the trade. You win, you’re happy. you lose, you’re happy.

    I took that trade in gold by the way. That one was screaming at us: “please trade me :-) “

    Reply
  119. adewale

    Good stuff from a savvy price action Authority.Daily chart always act as a filter for the polluted and biased noise of lower timeframes.I discovered that with daily charts, you only have one or two quality setup in a week.This eventually helps you to embrace quality over quantity.Forex trading, the greatest test of self discipline.

    Reply
  120. Andrew

    This is one of the best articles on trading that I have ever read.

    Reply
  121. walterwzhh

    Patience and mental fortitude is so important. Many thanks for sharing your strategies with us.

    Reply
  122. chris

    Hi Nial,

    This is so so true, when i started fx trading, my “guru” told me to emulate his success using 5 min charts, that was the biggest mistake i had ever made…..over time even his account went into margin call…many traders under him gave up as a result and called Forex a scam…

    Longer time frames enable one to have more time and still make the money they want if they know what they are doing …thanks Nial, integrity and honesty don’t come by that easily now a days..

    Reply
  123. J.R.JULIUS

    Its really gift to Read Your Articles Nial.

    Thanks.

    Reply
  124. Sahil

    Bravo!!!….thats all i can say….Bravo!!!

    Reply
  125. Lionell Dixon

    Good stuff Nial! As always thanks so very much for your incredible lessons!

    Reply

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