FOREX THEORY
What Time Frame
Should I Trade?
One of the reasons
newbie forex traders don’t do as well as they should is because they’re usually
trading the wrong time frame for their personality.
New forex traders
will want to get rich quick so they’ll start trading small time frames like the
1-minute or 5-minute charts. Then they end up getting frustrated when they
trade because the time frame doesn’t fit their personality.
For some forex
traders, they feel most comfortable trading the 1-hour charts.
This time frame is
longer, but not too long, and trade signals are fewer, but not too few. Trading
on this time frame helps give more time to analyze the market and not feel so
rushed.
On the other hand,
we have a friend who could never, ever, trade in a 1-hour time frame.
It would be way too
slow for him and he’d probably think he was going to rot and die before he
could get in a trade. He prefers trading a 10-minute chart. It still gives him
enough time (but not too much) to make decisions based on his trading plan.
Another buddy of
ours can’t figure out how forex traders trade on a 1-hour chart because he
thinks it’s too fast! He trades only daily, weekly, and monthly charts.
Okay, so you’re
probably asking what the right time frame is for you.
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