FOREX THEORY
What Time Frame Is
Best for Trading? (Part 2)
You also have to
consider the amount of capital you have to trade.
Shorter time frames
allow you to make better use of margin and have tighter stop losses.
Larger time frames
require bigger stops, thus a bigger account, so you can handle the market
swings without facing a margin call.
The most important
thing to remember is that whatever time frame you choose to trade, it should
naturally fit your personality.
If you feel a
little uptight like your undies are loose or your pants are little too short,
then maybe it’s just not the right fit.
This is why we
suggest demo trading on several time frames for a while to find your comfort
zone.
This will help you determine the best fit for you to make the best
trading decisions you can.
When you finally
decide on your preferred time frame, that’s when the fun begins. This is when
you start looking at multiple time frames to help you analyze the market.
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