Every trader dreams to earn a lot of money but spend by the charts no more than a couple of hours a day. And it is possible, although not for everyone. Most intraday traders, especially scalpers, are forced to spend many hours searching for suitable trading setups and monitoring open positions.
Every trader dreams to earn a lot of money but spend by the charts no more than a couple of hours a day. And it is possible, although not for everyone. Most intraday traders, especially scalpers, are forced to spend many hours searching for suitable trading setups and monitoring open positions. As a result, Forex turns into a full-time job that brings no joy. But there is a way you can make real money on Forex while spending minimum time on trading.
Low-Frequency Trading Is the Key
Due to high volatility, the situation on the market changes quite quickly during the day. That’s the main reason why short-term positions require constant monitoring. Low-frequency traders have a completely different trading routine:
- They search for suitable trades only once a day
- Their open positions might be checked once in 24 hours only
- Economic indicators have a lower impact on long-term trades so there is no point to close or monitor your transactions during news releases
Main Advantages of This Trading Style
If you decide to choose the low-frequency style (swing or position trading), you’ll automatically gain a few benefits over intraday market players:
- Less trading risk as the trades are based on a more reliable major trend
- Higher return on every position
- Lower transaction costs
- Overtrading or trading addiction will not become your trading problems
- You will eliminate emotions from your trading and get less stress that grows significantly when constantly staring into the screens
- You will get much less market noise
- You have more free time that you can spend doing things you love
How to Use Low-Frequency Trading
Your main trading strategy can vary. But if your main goal is to spend by the screens as less time as possible, then use the following tips:
- Switch to higher timeframes (H4, D1, W1). The trend here is more clear and signals are more reliable.
- Trade at the end of the day. The end of the European and American trading sessions have the highest liquidity and offer more trading opportunities.
- Set and forget. If you want your trade to work out, you need to let it go for a while. Once you open it, forget about it for a while. Check it only at the end of the next day when you come searching for other setups.
- Strictly follow your plan. And that includes both your trading plan and risk management system.
- And that’s the whole secret of making high profits with lower risks. That’s what professional traders do and that’s what can take you to their level.