Best Time Frames for Forex Trading
All time frames are good for anyone but not necessarily suitable for anyone, so choosing which time frame is the best for forex trading is up to you. Why is that? because the time frame is the same as the path of life, which path will be chosen is the best path for you or me.
But before choosing the time frame that will be used as the basis for trading, you should first look at the concepts, advantages and disadvantages of using various types of time frames. And the type of time frame that will be used will also affect what type of trader you are.
| Time Frame | Description | Advantage | deficiency |
|---|---|---|---|
| Long Term | Long term traders usually use daily, weekly time frames. With a weekly chart can provide a long picture of market conditions and assisted by a short term time frame to take a position to enter the market. Trading from a few weeks, months to years | You don't have to constantly look at the computer screen and get dizzy with wild price movements in the market. And you will reduce the amount of spread or cost per transaction. | Using this method only allows you to earn 1 to 2 times a year. And an account with a very large deposit is needed to get a pretty kicking profit. Potential loss occurs in a matter of months |
| Short Term (Swing) | Short term traders use time frames within hours and trade within hours to weeks. | More opportunities to trade. | The transaction fees are higher due to the larger number of trades. |
| Intraday | This type of trader uses charts in minutes such as 1 minute or 5 minutes and trades intraday and exits when the market closes on the same day. | There are so many opportunities to trade so there are more opportunities to make profit or loss. | Transaction costs are very large when compared to the long-term and short-term types because the more trading positions, the greater the costs (spreads) that must be incurred. |
When trading, don't forget to see how much capital you have because this will affect your trading strategy.
When you use a shorter (faster) time frame, it will require more ability to manage margin and apply risk management (stop loss).
In essence, whatever time frame you will use, please adjust it to your personal abilities, especially the time you can spend trading forex. And do not impose your conditions on the forex market because it will be very painful.
Also remember that the choice of time frame is closely related to your psychology in dealing with uncertain market conditions. Because the certainty in the forex market is the uncertainty itself.
Related Post:
1. Forex Trading With Multiple Time Frames
2.Time Frame Used for Forex Trading
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