When it comes to tutoring people to trade we inevitably face the hurdle of convincing the student she needs to start out identifying trend shifts on the higher time frames first – monthly and weekly — and gradually work her way down to the lower time frames – intraday — if at all.

In fractal geometry it has been determined that when one drops down to a lower scale the structure is still very similar to the next higher scale, but varies to a slight degree of complication. What that means is what starts out appearing to very similar as you move slowly up or down the scale looks completely different due to compression the further along the scale you move.  If we apply this to markets we say that day-trading using 3 & 15 minute charts is going to be significantly more complicated than position trading the daily and weekly charts.  From an education point of view you should learn to trade the higher time frame first. An advantage of trading the higher time frames is that you will have an improved risk/reward.

The best day-trader I know considers himself a position trader first, and has a separate, smaller account for those times when he trades the lower time frames.    

Jay Norris

Senior Market Strategist

Forex Educator


Contact Us:
Local: 312-896-3930
Toll Free: 800-971-2440

DISCLAIMER: Forex (off-exchange foreign currency futures and options or FX) trading involves substantial risk of loss and is not suitable for every investor. The value of currencies may fluctuate and investors may lose all or more than their original investments. Risks also include, but are not limited to, the potential for changing political and/or economic conditions that may substantially affect the price and/or liquidity of a currency. The impact of seasonal and geopolitical events is already factored into market prices. Prices in the underlying cash or physical markets do not necessarily move in tandem with futures and options prices. The leveraged nature of FX trading means that any market movement will have an equally proportional effect on your deposited funds and such may work against you as well as for you. In no event should the content of this correspondence be construed as an express or implied promise or guarantee from B.I.G. Forex, LLC and Brewer Investment Group, LLC or its subsidiaries and/or affiliates that you will profit or that losses can or will be limited in any manner whatsoever. Loss-limiting strategies such as stop loss orders may not be effective because market conditions may make it impossible to execute such orders. Likewise, strategies using combinations of positions such as “spread” or “straddle” trades may be just as risky as simple long and short positions. Past results are no indication of future performance. Information contained in this correspondence is intended for informational purposes only and was obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.