Justin Bennett is a Forex trader, coach and founder of Daily Price Action. He began trading equities and ETFs in and later transitioned to Forex in His "aha" moment came in when he discovered the simple yet profitable technical patterns he teaches today.

Justin has now taught more than 1, students from 53 countries in the Daily Price Action course and community. Follow JustinBennettFX Recent Articles. Trading from the daily time frame. By making this one simple change, you drastically increase your odds of success.

And in a business where probabilities are the name of the game, increasing your odds should be your top priority. Like all things when it comes to Forex trading there are advantages and disadvantages to utilizing the daily chart. Having utilized the daily time frame since , I can tell you that all five points in the infographic above are real. I receive hundreds of emails from Forex traders every week. Many of them are questions and even objections to trading from such a high time frame. This is because there is one important word missing.

There are tons of so-called opportunities on every time frame each day. Anyone who has traded both lower and higher time frames will tell you that the daily is superior when it comes to quality. With the ability to trade micro lots at most Forex brokerages, the daily time frame has never been more accessible. In fact, you are much more likely to do so on the daily than any other time frame. The truth is that the distance from your entry to your stop loss is irrelevant.

You see, the only two things that matter are your risk to reward ratio and your position size. Everything in the world of trading is relative.

So even though you may have a pip stop loss, your profit target could be , or even pips away. A wider stop loss does not equal greater risk.

Forex Trading Strategies Revealed | Beginners and Advanced Traders

Nor does it negatively affect the profit potential from a given setup. This notion is particularly the case for those using the higher time frames. After all, there are only so many quality setups that come along each week. Everyone wants to have the trading capital of George Soros , Bill Lipschutz or Stanley Druckenmiller. But most Forex traders are kidding themselves. Even if you are on the 1-hour chart, you are still trading in a way that is not in sync with how the big names in the business do things.

Can you imagine George Soros risking billions of dollars on a 1-hour swing trade? How about a scalp on the minute chart?

Is it because they believe that a lower time frame will produce more trade setups and thus more profits? Everything you do in the markets must resonate with who you are as a person.

K.I.S.S. - ‘Keep it Simple Stupid Forex Trading Method' » Learn To Trade

Always try to align your efforts with your passion. If you need a lower time frame to satisfy an inner calling, so be it. Are you trading the Forex market for the excitement of the trade or to build a trading account? Now, before you rush to answer with the latter, be sure to dig deep here. Take a few days to think about it if you have to. Do more trades equal more excitement in your life?

So take a step back and figure out if you fall into this category of traders.

Finding a strategy that fits your personality as well as your lifestyle is critical to your success as a Forex trader. However, far too many traders disregard the daily time frame when searching for a strategy that can work for them. Most tend to think that the lower time frames will produce more setups and thus higher monthly returns.

It gives them the best chance of extracting a profit from the market over an extended period. We also know, due to the various forums and chat rooms out there, that the majority of Forex traders are stuck on the 1-hour chart or lower. Try switching to the daily time frame for one month using nothing but simple price action and report back here with your results. Post your results or ask a question in the comments section below.

I look forward to hearing from you. Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information.

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Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website.

The past performance of any trading system or methodology is not necessarily indicative of future results. Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you.

You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice.

We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results. Private Trading Community Login Sign up for a lifetime membership.

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What is it, you ask? Advantages and Disadvantages of the Daily Chart. Copyright by Daily Price Action, LLC.