Advantages of trading on the daily chart

Hello everyone!

Today I want to discuss with you the advantages of trading on the daily chart.
Not all traders understand why daily timeframes are so attractive, but professionals trade on them.
Let's figure it out!

But first, let's recall the words of Ed Seikota:
Constantly looking at the charts is like playing roulette. You'll end up spending the whole day playing. I check my charts only once a day after the market closes.

You are learning patience
Patience is a key quality that is necessary for success in trading. If you trade on daily charts, you will have to learn patience, because you will have to wait for the right signal for several days, or even weeks. But don't be afraid, it will only increase your chances of success and allow you to use only the most reliable and profitable entry points.

Free all day
In trading, you will have to sacrifice not only your time, but also put some of your money at risk. When you trade on daily charts, you have a whole free day to go about your business and earn money. This will allow you not to rely only on trading and diversify your income.

You automatically filter the market noise
A variety of events can occur during the day that will affect the price movement. The daily chart allows you to filter intraday volatility spikes and focus only on the closing price of the trading session, without being distracted by anything else.
The technical signals and patterns that appear on these higher timeframes are much more reliable than the patterns you encounter on lower timeframes. In many cases, the price movement on lower timeframes is simply market noise.

Reliability
The closing price level, which is the result of a whole day of struggle between buyers and sellers, is a reliable signal about the current state of the market. When making your trading decisions, you should always pay attention to signals from higher timeframes.
Many novice traders who come to the financial markets tend to short-term trading on intraday timeframes. These traders believe that by trading on lower timeframes, they have more trading opportunities, and thus they can get more profit in the long run.
Although theoretically this type of thinking may sound logical, in fact it is just a myth. You should realize the fact that support and resistance levels, chart patterns, price action patterns, indicator signals are much more reliable on higher timeframes.

You avoid over-trading
Over—trading is one of the main problems faced by traders. When you use a daily timeframe, you focus on the global picture of the market, and you do not need to constantly open new deals. You can choose only the best setups.
Some traders are addicted to trading and have a psychological need to constantly enter and exit the market. It's like an adrenaline rush, which they constantly need. Obviously, this can be counterproductive and even lead to the drain of the entire deposit.
There is another type of traders who tend to constantly monitor their positions and analyze charts. These traders are very active, and it can be very difficult for them to make a deal. They are also usually emotionally traders, inclined to act on intuition.
The best advice I can give to any trader who has difficulty controlling his emotions in the market is to analyze the market only once a day.

You find the strongest trends
In trading, you should always try to follow the path of least resistance. This means that if the market is moving in a certain direction, the price is likely to continue its movement in this direction until there are factors indicating a reversal.
The trends on the daily chart are very strong and you will rarely fall into the trap if you use the daily chart.
You will only need 15-30 minutes to analyze the market
You don't have to spend whole trading sessions in front of the monitor and analyze the market in robot mode, which usually leads to its reanalysis. You can safely look at the chart and determine whether there is a signal to enter the market or not, and then place an order to open a deal.

Possible risks are reduced
Every trader should have a detailed risk management plan. As part of this risk management plan, you should take into account factors such as the average risk per trade, the risk-to-profit ratio, how you will handle drawdowns, as well as the maximum amount of leverage that you will use.
Some novice traders believe that they cannot trade on daily charts because they would have to place a stop loss at a relatively large distance in points compared to a smaller timeframe. They think they will take too much risk regarding the size of their small account.
However, this assumption is completely wrong. Even if the average daily range of a trading instrument is much higher than the hourly or four—hour range, the only thing a trader needs to do in this case is to reduce the size of the position in order to adapt to a potentially larger stop loss. And thus you will actually reduce your leverage, which in turn will reduce your overall exposure to risk.

You have a lot of time left to enjoy life
Isn't that why we started trading? It is foolish to deny the fact that almost everyone comes to the stock exchange for money and financial independence. And chaining yourself to the monitor screen for 8 hours can take away from you what you have been striving for.
In order to be an effective trader, you do not need to spend a whole working day analyzing charts. In fact, rarer and more selective trading can lead to better results. And as an added bonus, you can also keep your day job so that you always have an additional source of income.

Conclusion
Day trading provides many advantages, frees up your day and helps you avoid trading on false signals.
You will become disciplined, your capital will not jump sharply up and down, you will become a professional!
Good luck!

Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻