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Choosing the perfect time frame for trading by Andrew Bezen
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Choosing the perfect time frame for trading |
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Business,Finance & Investment
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Forex trading is getting very much popularity nowadays and every single day the number of traders are increasing at an exponential rate in the forex market. Previously trading the financial instrument was only limited to the large banks and institutions traders but due to the recent advancement in technology, the traders can easily access to the live financial assets in the market from their forex platform. If you are relatively new in trading then you might be struggling hard and switching strategies after strategies to make a profit. But most of the novice traders in the financial market doesn’t know that choosing the right time frame is one of the most important elements for trading the live assets in the market. Some of you might have often heard that the higher time frame is the best time frame to trade the live assets in the market but actually, there is a lot more in this section. In this article, we will discuss how to choose the perfect time frame in our forex platform. Know your trading style: The first thing that you need to do is to know about your trading style. If you don’t have any specific style of trading that it's very important that you find a stable trading strategy capable of generating profit in the long run. There are mostly three types of traders in the market. The first one is the scalper whose trade duration varies from one minute to few minutes or even hours. The second one is the day traders who close all of their open positions by the end of the day. The third one is the long term traders who carry their trade in the market for more than one days or week. So you need to find which category you belong to. Picking the time frame : There is saying in the forex market that trading the higher time frame always gives your better trading result. It’s true to a certain extent but if you truly want to become profitable traders in the financial market it is highly imperative you chose the time frame according to your trading strategy. If you belong to the scalpers than you should trade the smaller time frame but be sure to trade in favor of the long-term prevailing trend. If you belong to the day traders community then you can pick the 4 hours and daily time frame to trade the live assets in the market. The last type of traders are the long term traders who use the daily weekly and monthly time frame and usually carries their trade for a long period of time. Multiple time frame analysis: Now you know which time frame you should choose your forex platform but you should also learn how to do the multiple time frame analysis. If you look at the professional traders than you will see that irrespective of their trading style they always do the multiple time frame analysis before executing any trades in the market. It’s true that doing the multiple time frame analysis will be a little bit difficult for you at the very begging but if stick to it then it will be soon easier for you. While doing the multiple time frame analysis always make sure that you follow the higher time frame to identify the prevailing trend in the market. Most of the novice traders lose a lot of their money only because they don’t trade in favor of the long-term trend. So if you truly want to become a professional trader than making sure you always do the multiple time frame analysis and give preference to the higher time frame. Summary: There are many different things that you need to take care of while trading the financial instrument in the world. When you execute any orders in the market make sure that you do the all three major types of analysis in the market. Know your trading style and based on that chose the desired time frame to execute your orders in the market. Try to learn the art of price action trading strategy since it will help to filter the best possible trades in the market. Last but not the least always follow proper risk management factors.
Related Articles -
forex, trading, trade forex,
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