Forex Training - The Importance of Using the Same Timeframe in Forex Trading

There are many times when I hear about forex traders opening or closing
a trade using 1-minute or 5 minute forex chart when the forex market
moves against them. This is not my style of forex trading as the
timeframe is too short to prove anything. When the market moves against them, they will switch to 15 minutes
chart to justify staying in the market for a little longer. After a
while if the forex market continues to move against them, they will
switch to the hourly chart to find some reasons to stay in the trade.
They think that it might be just a small pullback and they have to be
patient.
As the market continues to move against them, which may be more than 50
or 100 pips, they will then shift to 4 hourly or daily chart, hoping
that they can find some other reasons to stay in the trade. So what
happens if the market still move against the trader and is already
hundreds of pips away? The next step they will find themselves in is
not holding the position anymore, instead they will get a margin call
because their forex trading account have not enough funds left to hold
their position.
The main issue here is that they were looking for ways to stay in a
losing trade rather than closing and cutting the loss. Even if you are
not using my forex trading system , you should be always using a stop
loss and and holding on to a losing position.
Many new traders only think of winning in forex trading and think that
they are losers if they lost a trade. This is because they do not have
the right forex training and therefore do not know the correct way of
trading. Professional and institutional forex traders have losing
trades too and they understand that this is just part and parcel of
successful trading.
If you ask me what is guaranteed in forex trading, I will say there is
a guarantee of losing and not winning! But it’s the money management
and the set of rules that will determine your success. You do not have
to like losing, but you have accept the fact that there’s is no holy
grail in forex trading and not all can be winning trades.
I hope the above forex education will benefit you if you have the habit
of switching time frames to stay in a losing trade. This is not a good
method to keep losses small. Judge yourself based on monthly basis
instead of daily basis. Be consistent in your trading system and stick
to one time frame if you are using that timeframe to trade.