Hehe what a comparison nice

Exactly

Hi Nial, I am grateful for these eye opening insights. I have been trading for about a year now and just like you expressed, it has been ups and downs with wins and losses. I hope to regulate my trades with day trading henceforth and furnish this forum with testimonials in the nearest future.

A very strong article! Thanks for your help.

scalping is merely gambling.

This shouldn’t be a great worry friend. when/what time do the candle sticks/bars/market close for the day and start a new day? Am in Ghana, with different seasons we have 9:00pm and 10:00pm time changes. so you can trade after 9 or 10 depending on the season or early morning at 8:00am or some minutes to 8 when markets relax and continue. all times are GMT :00. Reason Nail emphasized on ”end of day….” is that, WHEN bars or candle sticks are complete for the day, they give you a clue of the possible direction of the market.

I couldn’t agree more. Brilliant article. Traders take note.

End of day trading occurs around the same time New York USA closes for the day.

Exactly Simon, great comparison of costs, this is one of my points, I agree.

Great comment John, I agree.

Great stuff. Really appreciate it.

Take this… day trader stops 10 pips profits 10 pips, spread 2 pips and you just paid 20% to the broker. Swings 100 pips stops same thing we pay 2%

Guys if you don’t believe Nial about high frequency day trading and its cost, just open an account where you can actually see commission (brokers offer these accounts for scalpers)
and see for yourself after a couple of months. You also take into account that you are going to use much bigger position sizes due to tight stops so cost is very high.
100 trades per month x $10 (transaction cost per 1 lot) x 12 months = $12.000
that’s a very nice startup account you just blew thru commissions and broker likes you :)

Trading IS all about relax and frequency, because it’s that what makes our psychology, our mindset, became more accurate to the real well successed trading. Who thinks that what matters is the ideal aproach relatively to the time frame, is ignorating the mind part, and the risk management part. Strategy must be the last concern about trading.

Waiting can be a little frustrating for beginners, but it will compensate over time. We have to be patient, like Nial teaches. He is the proof that patient traders are more profitable.

When your paying a spread and commission, a tick chart vs a daily chart makes a very big difference, the lower the time frame the more you trade and more you churn your account due to costs, slippage and so on.

I politely disagree, what I’ve written about here is in fact true. I would be very interested to compare the results of these person who is trading 1 minute and 5 minute charts, to another person who is trading higher time-frames.

This kind of thought is what Nial always fight against. We can adjust our lots when we trade higher timeframes. But I think when a trader make an argument like that, he is thinking in a very small account, like 100$ or 200$. And in fact, with an account like that, even the smallest lots will increase his risk if he trades high time frames. So, if the trader has some few dollars, he should save more money, until he gets an ideal amount to get started, instead day trading trying increase his capital, which is pure illusion.

I believe nail was talking to beginner’s such as myself,
I starting of trading 1hr and H4 time frames and it was working out very well and making good profits for me… then I thought that if I switch to small times frames it would be the same but I was totally wrong as it is time consuming and stressfull, price action moves fast and unpredictable….
thank you very much for sharing this Nial its been an eye opener

Emeka. Wider stops does not make any difference because we just reduce the position size (wider stop = less lots, and tighter stop = more lots, yet we can still risk the same $ amount)

Best Regards

Rossen Dimitrov

I disagree David. The smaller time-frames are not the same as higher time frames, the short time-frame has far more random noise and their is far less weight behind the signals.

Hi Nial
If you understand price action as you say you do, you can trade from any time frame and it doesn’t mean you have to stair at the charts all day.It like saying if you go to another country your never going to understand the language,this is not true,but if you stay longer enough you will start speaking the same language.
The only thing that harms your trading is yourself.Not The markets
Hope this MSG find you well

Taking notes takes a lot of time. The more you trade, the more time it takes to take notes. It is very tedious and hardly anyone likes to do it.
It forces me to trade less.

The second thing, when you start with a small bill, you can not buy everything. It’s difficult to set SL well on expensive pairs, which is why I choose cheap ones, such as AUD / JPY.
Andrew