This is one common question that I often get from the readers of this blog. Most new traders tend to be confused about which time frame they should be using in their trades and this is exactly what I am going to share with you guys here today.
When selecting the time frame to trade with, you will need to consider the amount of time you are able to trade everyday. If you are those busy executive who has little time everyday to trade, I will suggest you to go with those higher time frames like the 4 hourly or daily chart.
This is because they are lesser movement within these higher time frame and therefore can give you more time to analyze the market. In addition, you will less likely miss out on good trades with these higher time frames.
If you are those who has several hourly everyday to monitor your chart. You will have the option of choosing to be a forex scalper or a day trader.
If you decided to be a scalper who enters and exits your position within minutes, you will use the 5 minutes and the 1 minute chart to trade.
If you decided to be a day trader who enters and exits your position within the same day like me, you will use the 15 minutes and hourly chart for your trading.
It really boils down to the type of trading style you are adopting. If you are those that wants to take multiple trades per day, you can be a scalper. However the problems with being a scalper is you have to be quick in your decision and the risk reward for a scalping trade is usually very poor.
That is why I decided to be a day trader. I love to trade with high risk reward ratio and this is what makes me profit months after months. Being a day trader also gives me lesser pressure as I do not have to deal with multiple trades everyday.
So at the end of the day, which time frame you should be using depends on what type of traders you are and the time you have to analyze the chart.
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