Category Archives for Friday Q&A

What is Friday Q&A?

Since starting Daily Price Action in 2014, I’ve received thousands of questions from Forex traders from around the world. In fact, this site has now reached traders from all 195 countries. Some questions have been easier to answer than others, but one thing has always been true… The answer has made someone’s Forex journey a […]

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How to Balance Market Risk and Reward When You Have a Small Account

market_risk_reward

Happy Friday! This week’s question comes from Laurie, who asks: I’m currently trading only .5% of my account and although I don’t actually feel fearful and I don’t hover, I’m still uncomfortable losing that amount of money. But if I reduce it even further, my profit is disproportionally small compared to my account balance. How […]

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How to Use Fear to Choose the Best Forex Position Size

Trading_fear

Happy Friday! This week’s question comes from Madison, who asks: What’s the best Forex position size to use when trading the higher time frames? You can have the greatest, most profitable trading strategy in the world, but if your risk is too high, you’re destined to struggle. Finding the right position size is a critical […]

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Should You Scale Into Positions or Not?

scaling_Forex_position

Happy Friday! This week’s question comes from RKS, who asks: Which is better, opening a full-size position at once or scaling in gradually? Scaling in is a great way to increase your profit potential without taking on more risk or trading more frequently. I’ve written about this technique in the past as something called pyramiding. […]

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Do You Have a Trading Edge?

Forex_trading_edge

Happy Friday! This week’s question comes from Niklaus, who asks: What factors should I consider when developing my trading edge? I love this question because it isn’t solely about a trading strategy. Instead, he asks what factors should be considered. The truth is, a trading edge is much more than a single strategy, or even […]

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How to Achieve a Profitable Forex Win Rate

forex_win_rate

Happy Friday! This week’s question comes from Mark, who asks: How can I achieve a high enough win rate to become profitable with Forex? Winning seems to be the key ingredient in just about any endeavor we take on in life. Want to become a successful athlete? You have to win. How about climbing your […]

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How to Navigate the Forex Market Through Summer

trading_on_beach

Happy Friday! This week’s question comes from Majid, who asks: How should we trade the Forex market in the summer when things slow down? There’s no denying that trading activity slows between the months of June and August. Many traders use this time to go on vacation, which causes volume to dry up. When market volume […]

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What Should You Do During a Losing Streak?

Forex_losing_streak

Happy Friday! This week’s question comes from Peter, who asks: What should one do during a losing streak? Losing money is never fun. It doesn’t matter if you’ve been trading for five months or five years, it’s never pleasant. That makes a losing streak the epitome of a bad experience for a trader. Not only […]

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How Long Should You Hold a Profitable Position?

holding_profitable_position

Happy Friday! This week’s question comes from Mthandazo, who asks: How long should one hold a profitable position? There is a misconception that to become successful as a trader, you need a strike rate above fifty percent. In other words, you need more winning trades than losing ones. In fact,  nothing could be further from […]

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How Should You Track and Measure Progress as a Trader?

measure-forex-progress

Happy Friday! This week’s question comes from Mark, who asks: How should you track and measure progress as a trader? Most Forex traders I speak with only track whether their equity curve is moving higher or lower. While that’s certainly a relevant and worthwhile thing to measure, it doesn’t show you the big picture. For […]

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Can You Start Trading Forex With Just $100?

Start_forex_with_$100

Happy Friday! This week’s question comes from Claire, who asks: Can I start trading Forex with just $100? There is a big difference between what you can do and what you should do. That applies to trading as much as to life in general. Just because you can do something doesn’t mean you should. Forex […]

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How to Deal With “Indecision” Candlestick Patterns

Forex indecision candlesticks

Happy Friday! This week’s question comes from Rahat, who asks: What about indecision candlestick patterns that occur at support or resistance? Do you recommend using them? This might surprise you, but I do in fact use indecision candlestick patterns such as dojis. But what may not be so surprising is how I use them. As […]

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What Is a “Confluence” of Support or Resistance?

Forex confluence

Happy Friday! This week’s question comes from Mario, who asks: What is a “confluence” of support or resistance? This is an excellent question, and the answer can improve your trading performance in a big way. But like all things, it takes practice, patience, and discipline to get it right. According to Merriam-Webster, the word confluence […]

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When Should You Move a Stop Loss to Breakeven?

forex breakeven stop loss

Happy Friday! This week’s question comes from John, who asks: When should a trader should move a stop loss order to breakeven? This is one of the more common questions among Forex traders. It’s also one of the most challenging to answer because it depends on several variables. And it makes sense that it’s a […]

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Which Forex Order Type Should You Use, Market or Pending?

Forex order types

Happy Friday! This week’s question comes from Marco, who asks: Should we use a market order or a pending order when entering a new position? The answer to whether you should use a market order or a pending order depends on the situation. For instance, if you know you won’t be around to execute a […]

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