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  1. Beginner
    Early Stages for Beginners
    8 Topics
  2. Forex Terminology
    11 Topics
  3. Margin & Leverage
    2 Topics
  4. Personal Psychology Questions
    2 Topics
  5. Psychology for Beginners
    7 Topics
  6. Intermediate
    Identifying Scams
    2 Topics
  7. Brokers for Beginners
    5 Topics
  8. Technical Analysis
    13 Topics
  9. Market Structure
    5 Topics
  10. Completion
    Risk Management for Beginners
    8 Topics
  11. Fundamental Analysis
    9 Topics
  12. Advanced
    Using Indicators
    6 Topics
  13. Technical Analysis (Part 2)
    8 Topics

Do I Have to Sit at a Chart 24/5?

To continue where I left off about the market being open 24/5, no, you do not have to be at a chart 24/5. You will kill your eyes if you did that 😅 Instead, the market comes equipped with tools that’ll allow you to incorporate trading into your everyday life.

“Types of Market Orders” will have its own section, but to brush over it quickly, there are tools within trading that allow the market to place trades for you once you set the standards. For example: if you want to enter the market for a BUY once price reaches a certain point, but you are not on your phone around that time because you’re with your significant other or at the gym, you can set up an order that executes a “buy” for you if price happens to get to that specific point.

With the market being so volatile, ANYTHING can happen at any point in time. Because you know this, you don’t want to miss it because you’re confident that the market will trade up! So you can simply place that order, which will be executed at a later time/date, instead of staring at a screen for hours waiting for it to potentially get there!

A few different scenarios can take place!

8 hours later:

  • You open your phone/laptop and see that price NEVER got to that area, so your trade was not executed.
  • You open your phone/laptop and see that your trade was executed and you’re losing $500. You are pissed.
  • You open your phone/laptop and see that your trade was executed and you’re making $500! You are elated!

Obviously, there’s other scenarios such as breaking even and a few others, but long story short, you don’t have to sit at a screen for hours at a time.

You may ask, well what if I don’t want to lose a certain amount of money even though I’m not on my phone? Or what if I’m making too much money without even knowing, and I want to guarantee some of that in my account? You can protect yourself in both instances! Just like there are orders that can get you in the market when you’re not actively on your phone/computer, there are tools that can protect you when you’re losing or making a lot of money.

Stop Loss: It is IMPERATIVE that you always make sure you trade with a stop loss. Stop losses are barriers that actively protect your account from being smoked. SMOKED like Smokey on Friday when he accidentally smoked Angel Dust and was locked in Deebo’s pigeon coop. Without a stop loss, your entire account is at risk.

If you don’t want to lose $100, a stop loss gets you out of the trade the very moment you are losing $100. If you don’t want to lose $500, a stop loss gets you out the trade the very moment you are losing $500. Very simple!

* NOTE: We will dive deeper and provide examples on this when we talk about lot sizes and pips*

Just like there’s a barrier that prevents you from leasing a certain amount of money, there’s also something that helps you guarantee a certain amount of money before you miss it. It’s called a TAKE PROFIT! There’s nothing worse than walking away from your phone and coming back to it 8 hours later to see that price went WAY further (higher or lower) than you predicted. This means you were up $1500 at one point in time, but price ended up retracing (coming back), and now you’re currently only up $261. Yes, there are ways to measure how far price shot up, or how low they went, and how much money you were making/losing at that particular point in time, even if you missed it on your phone.

A take profit does the same thing a stop loss does, just on the winning side. If you hope to make $1000 but your trade ENDS up getting to $1000 and your take profit is in place, your trade will AUTOMATICALLY CLOSE OUT, and the $1000 will be deposited into your account. It doesn’t matter if it takes 1 day, 2 days, or 3 days. If you have a proper stop loss and take profit in place, ONE OF THEM will be hit. You’ll either lose the amount of money that you were already comfortable with losing before you opened the trade, or you’ll make the amount of money that you wanted to make before you opened the trade.

There is only ONE con that I’ve seen with a take profit that I want you all to be mindful of. You can set a take profit at $1000, and if you’re off your phone for 8 hours straight, your floating profit (profit that hasn’t been closed yet) can get you all the way to $998, and then drop back to $400. You can come back to your screen and see price be INCHES away from your take profit and retraced back up/down (depending on if you were buying or selling).

Sometimes it’s good to check in even if you have a stop loss and a take profit. Sometimes, you may want to cut your losses in case you see clear as day that you’re on the wrong side of the trade and know that it’s definitely going to hit your stop loss. This way, you get out before losing that potential $500. OR, sometimes you may want to simply get out of the trade with a win because when you checked your phone, you saw that price started trading slowly around the $900 area (due to reaching a major resistance area, which we’ll get into a little later). Because of this, you manually close the trade and are happy with a $900 profit instead of risking staying in the trade any longer and losing some of that $900 profit, hoping to get to $1000.

Overall, no, you do not have to sit at a screen 24 hours of the day. You don’t even have to sit at a screen for 8 hours of the day. You can do whatever makes YOU feel comfortable and whatever routine you’ve created for yourself!