Tuesday, March 29, 2016

Which Time Frame Should You Trade

One of the reasons most novice forex traders fail to achieve success in forex trading is because they’re actually trading in a time frame that doesn’t perfectly match their personality.

One of the most important thing a trader should consider is which time frame are they most comfortable to trade in.

Most of the forex newcomers often carry this “false expectation” that you will instantly earn tons of money once you enter the forex market. Because of that belief, they are tempted to trade on short time frames, such as 1-minute or 5-minute charts.

Unfortunately, this type of time frame does not work quite well with beginner traders, as longer time frames are believed to be a more appropriate option for novice traders.

Truth is, only you can actually determine which time frame are you most comfortable with. Are you the impulsive kind of person who makes quick decisions and looks for results right away? Then short-term time frame such as 15 minutes or 5 minutes (also called Scalping or Day-Trading) might work best for you.

However, if you’re a more cautious type of person, and does not want to feel rushed when making decisions, then long-term approach might be more suitable for you. The most optimal time frame for you might be to trade on daily, weekly or monthly charts.

Novice traders should stick to a long-term approach, and only move to shorter-term time frames as they get more familiar and see success in long-term strategies. In this manner, as the margin of error decreases with shorter term charts, the trader will be able to make adjustments to his risk and trade management.

Learn more about foreign currency exchange trading and further understand what is forex by visiting our educational blogs. Do you want to find out who the best forex brokers are? Then visit Wibestbroker.com to see :)

1 comment:

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