The Top 6 Reasons It’s Smart To Follow A Forex Signals Service Based On End Of Day Trading

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For people who want to tap into the extraordinary wealth accumulation potential of the Forex market without spending years learning to trade on their own, using a Forex signals service is a smart choice.

Forex signals services allow you to simply follow an already successful Forex trader and do what they do. Experienced traders make all the trading decisions, and you just follow along.

A Forex signals service based on end of day trading has numerous benefits for the signals follower such as being easier to follow, requiring less time commitment and stronger trade setups.

End Of Day trading is when you make all your trading decisions at the end of the Daily candle, and the start of the new Daily candle. On the broker we use, this happens at 5 PM New York Time.

Let's go over some reasons a Forex signals service should be based on End Of Day Trading.

Reason 1: You Can Actually Follow A Forex Signals Service Based On End Of Day Trading

One of the biggest problems facing signal followers is trying to use Forex signals that just cannot be traded properly in real life. It is the same problem traders have trying to trade a strategy off the lower time frames.

I’m sure we’ve all put trading strategies on our charts and thought they looked great. We backtest the strategy and see a lot of winning trades and get very excited. But what we fail to realize is WHEN those trade signals become available.

Do the trade signals happen at a time YOU can actually trade them?

What happens when the strategy you are using produces a perfect trade setup at 3:33 AM? Or while you are at work at 12:00 in the afternoon? Or how about when you are eating dinner, at a movie or taking a shower?

You guessed it, that trade signal is WORTHLESS.

It does not matter if the signals the strategy produces are profitable if YOU cannot trade them. Those missed opportunities not only fail to put money in your account, but they are very frustrating to live with.

Imagine opening your charts and seeing winning trade after winning trade that YOU did not take for one reason or another.

The same thing happens if you use a Forex signals service that sends out signals any time, day or night.

You need to look for a Forex signals service you can ACTUALLY trade in real life.

The easiest way to do this is to use a service that trades off the Daily Charts. When the signals come from the Daily charts, you only have to perform trading actions once a day (when the Daily candle closes). This is an easy way to fit trading into even the busiest of lifestyles.

You’d be surprised how many people try to manipulate their life to fit the signals service they are using. They resign themselves to waking up extremely early, going to bed extremely late or using alarms that can go off any time day or night. But no matter how much they try, these changes to their lifestyle are not sustainable, and they eventually abandon the service altogether.

To be successful, you need to find a way of participating in the Forex Market without turning your life upside down. This is the only way you will be able to continue trading over the long term. So no matter how good you think a particular Forex signals service is, you must actually be able to trade the signals to profit from them.

There is a lot of rhetoric out there about how you cannot be profitable trading from the longer time frames. The theory is you need to be on the lower time frames, spend a lot of time in front of the charts and place a lot of trades. But the truth is, it is better to be able to trade a strategy perfectly on the Daily charts than to trade on the lower time frames imperfectly.

Think about it for a minute, and you will see the wisdom of this thinking.

PMTW Trade Signals come exclusively from an End Of Day trading strategy off the Daily charts, so you will only be getting signals once a day.

Reason 2: Forex End Of Day Trading Frees You From “Market Slavery”

When we first think about becoming Forex traders, most of us suffer from delusions. We think we are going to open up our charts in the morning and immediately find a perfect trade with tight stop loss and high profit potential. Then the trade will quickly go in our favor and end in massive profits.

Basically, we should be able to make a ton of money before breakfast… and then go about our day.

But the truth is, Intraday trading (trading on the lower time frames), is very difficult and much more time consuming and stressful than you may imagine.

Here are some of the problems an Intraday trader faces…

- - Random market noise due to being on lower time frames
  - News announcements creating major price spikes
  - Managing multiple charts at the same time looking for trades
  - Getting into more trades due to low take profit levels
  - Accepting more losses due to placing many trades with lower accuracy
  - Spending many hours staring at the charts, looking for trades or managing trades
  - Trading at all hours of the day and night
  - Constantly fighting the emotions of greed and fear

The irony is, we get into trading to create more money, time and freedom for ourselves so we can improve the standard of our lives. In the end, we become SLAVES to the market and spend less time with the people we care about or doing the activities we enjoy. Everything you do, from sleep to eating to going to the grocery store becomes dictated by the market.

Being a "Market Slave" not only dominates your time and controls your lifestyle… it changes you as a person as well. Your happiness becomes linked to your performance in the market. You go from extreme euphoria when you are winning to deep depression when you are losing.

This up and down emotional roller-coaster ride is not good for you, or the people around you.

Intraday trading turns into the worst job of your life. And while you are your own boss… the uncompromising market is what controls every aspect of your working and non-working life. To make matters worse, you have to constantly struggle to stay ahead while your paychecks are not guaranteed.

Changing to End Of Day trading requires a fundamental shift in thinking. You need to start thinking like an INVESTOR instead of an EMPLOYEE. Investors let their money do the work… which frees up time and allows them to get off the emotional and financial roller-coaster ride of Intraday trading.

Freeing yourself from "Market Slavery" is the biggest benefit of End Of Day trading… but it also make more sense from a strictly trading standpoint. The pace is slower and more time can be spent on making smart trading decisions. Plus, you don't have to worry about missing great trading opportunities since you only need to be available once a day.

PMTW Trade Signals are updated once a day, between 6 PM and 6:20 PM New York Time. This means you are not a slave to the market. Just spend 10 minutes a day trading, and then get back to your busy life.

Reason 3: Forex End Of Day Trading Is Easier To Trade Than Intraday Trading

Intraday trading demands you are a very active trader. You need to multitask, watch many price charts at the same time and make decisions about getting into trades or managing trades very quickly. If you are an adrenaline junky… this is for you.

The problem is, more often than not success depends more on the trader than the strategy. This makes it very hard to learn an Intraday trading system and get similar results to a more experienced trader. And few traders can handle the stress long enough to develop the experience necessary to get the best results.

And if you are following a Forex signals service with this fast moving action, it is almost impossible to copy the trader perfectly.

On the other hand, End Of Day trading is substantially easier.

You can take your time looking at the charts and make trading decisions based more on solid reasoning than gut feelings. When you trade a solid trading strategy on the Daily charts, it is very difficult to make a trading mistake since you are under less time pressure. (This does not mean all trades will be winners… but your trades are more likely to win since you are using proven strategies instead of emotions).

The same goes for managing trades. You can keep a cool head and manage trades based on the trading rules rather than emotions like fear or greed. If you are looking for consistency and less stress, trading the Daily charts is the way to go.

And since trading activity only happens once a day, there should be no reason for missed trades or mismanaged trades when following a trader providing signals.

PMTW Trade Signals are derived from an End Of Day strategy that trades off the Daily charts. This means you can trade the signals with confidence knowing they come from a proven strategy, and not just a gut feeling from a trader.

Reason 4: Forex End Of Day Trading Is More Efficient Than Intraday Trading

Traditionally, Intraday traders place more trades and have lower take profit levels. This makes the SPREAD an important factor in your trading. (The Spread is what you pay your broker when you enter a trade).

Basically, you end up paying more to the broker for your trading.

Here is an example…

Pretend you are trading a currency pair with a 3 pip spread. (This means you pay your broker 3 pips per transaction).

Let's say an intraday trader is trading a strategy with a 30 pip take profit, and it is a winner. Since you are paying 3 pips to make 30, the spread costs are 10%. And since you are placing more trades over all, this cost can really add up.

On the other hand, End Of Day traders place less trades and have higher take profit levels. This makes spread less impacting on your profits. In the end, you pay your broker less and keep more of the profits in your account.

Here is an example…

Pretend you are trading the same currency pair with a 3 pip spread.

Let's say the EOD trader is trading a strategy with a 200 pip take profit, and it is a winner. Since you are paying 3 pips to make 200, the spread cost is only 1.5%. And to make things even better, you are placing less trades overall, so the spread cost is minimal.

As you can plainly see, End Of Day trading is much more efficient and reduces your spread costs dramatically.

PMTW Trade Signals have higher pip targets of hundreds of pips. This means the spread cost is just a fraction of what it would be placing Intraday trades with smaller targets.

Reason 5: Forex End Of Day Trading Is Less Risky Than Intraday Trading (Against Popular Belief)

I need to debunk a common myth about trading on higher time frames. The myth is… trading on the Daily charts is RISKIER than Intraday trading on lower time frames. This is only true if the trader does not know anything about money management.

This common misconception happens because of the difference in stop loss values between lower time frames and higher time frames. People tend to believe that the higher the stop loss value, the more money you have at risk.

For example, if you were trading 0.1 Lots (and 0.1 Lots = $1) a 30 pip stop loss would have $30 at risk and a 200 pip stop loss would have $200 at risk. But this would only happen if you were using poor money management that does not take into account the stop loss value.

The stop loss value in pips determines how many pips a trade can go against you before you want to cut your losses and exit the trade. But the "risk" you are willing to accept on a trade has to do with how much money you have at risk on a trade.

This is not just about pips, but rather a combination of pips and lot size, which determines how much money is at risk on the trade.

A better way to trade is to risk a certain percentage of your account for each trade… REGARDLESS of what the stop loss value is.

If you’ve been going over my training, you know I compartmentalize my trading by trading one thing per account with 5% risk per trade. (This means the maximum amount of risk I can have per ACCOUNT is only 5%).

This means that the risk of a trade with a 30 pip stop loss and a 200 pip stop loss is the SAME. Risk is controlled by manipulating the lot size, not the stop loss value.

The truth is, End Of Day trading can be much more accurate than trading on the Intraday time frames. This actually makes trading the Daily charts LESS risky than trading the lower time frames. (And you'll be glad to know, trading the Daily Charts can be just as profitable as Intraday trading).

All PMTW Trade Signals have a stop loss. It is the job of the subscriber to determine the correct money management strategy to use in order to control risk per trade. We recommend using a conservative money management strategy that controls risk.

Reason 6: Forex End Of Day Trading Can Be Just As Profitable As Intraday Trading

Most Intraday traders are enchanted with the idea of placing trades with very tight stop losses and exiting the trade with huge pip gains. After all, that would be the recipe for huge monetary gains in a very short time period. But that is just fantasy, not a realistic approach to Forex trading.

The truth is, those perfectly profitable trades are few and far between. By the time you factor in missed trades, losing trades and trades not exited with full profit, this fantasy completely falls apart. In reality, you end up sitting in front of the charts for hours placing and managing a lot of trades with very little to show for it (if anything).

On the other hand, Forex End Of Day trading on the Daily charts can be much more accurate when using realistic stop losses and targets. By trading less with more accuracy, you can make just as many profits. And I'll take REAL money in my account compared to FANTASY money any day of the week.

In my experience, profitability is not about how many trades you place. It is about how many winning trades you have compared to losing trades and trades that are exited before hitting the target. And the main focus needs to be on proper money management and risk to reward ratios on the trades you do place, instead of placing a large number of trades.

PMTW Trade Signals focus on taking trades with a high starting risk to reward ratio. This way, you don’t have to win all the time to still be profitable.

Conclusion: Understanding Why End Of Day Trading Matters For A Signals Service

You might be wondering why going over all the benefits of End Of Day trading for a signals service is important. After all, you are not being asked to learn and apply a trading strategy.

The reason understanding the benefits of EOD trading is important is you need to adopt the EOD traders mindset if you want to be successful using the signals.

You need to start thinking like an EOD trader, even though you are following signals. If you don't, your unrealistic expectations will lead to your failure.

- - If you expect tons of trades every day… you will be disappointed.
  - If you expect to be in and out of the market every few minutes… you will be disappointed.
  - If you expect a fast paced roller-coaster ride full of adrenaline… you will be disappointed.

And if you are disappointed… you will abandon the service and miss out on all the long term profits.

On the other hand, if you understand EOD trading better, you won't be disappointed and you'll stick around for the long haul to collect all the pips you deserve.

If you expect to trade at a slower pace… you will not be disappointed.
If you expect trades to last days, or even weeks… you will not be disappointed.
If you expect trading to be a long term activity in the background of your life… you will not be disappointed.

Following a Forex signals service based on End Of Day trading means you must adopt an End Of Day trading mindset, so your expectations align with reality.

The point of following a Forex signals service is to get similar results to the service you are following. If you cannot do that, what’s the point?

And since end of day trading is easier to follow, doesn’t require a lot of time and can be just as profitable as faster paced trading… following a Forex signals service based on end of day trading is the smart choice.