Best Time Frame for Forex Trading
All of the time frames are good for anyone, but not necessarily suitable for anyone, so which time frame is the best choice for forex trading to use is up to you. Why is it like this because the time frame is the same as the way of life, which way to choose is the best way for you or myself.
But before choosing which time frame to use to base trading, you should first look at the concept, advantages and disadvantages using various types of time frames. And the type of time frame that will be used will also influence what type of trader you are.
|Long term||Long term traders usually use daily, weekly time frames. With weekly charts can provide a long picture of market conditions and assisted with short term time frames to take entry into 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 the wild movements of prices in the market. And you will reduce the number of spreads or fees per transaction.||Using this method only allows you to get 1 to 2 times a year. And an account with a very large deposit is needed to make a profit that is quite kicking.Potential loss occurs in a matter of months|
|Short Term (Swing)||Short term traders use time frames in a matter of hours and trade in a matter of hours to several weeks.||More opportunities to trade.||Transaction costs are greater because there are more trades.|
|Intraday||This type of trader uses charts in minutes such as 1 minute or 5 minutes and trades intraday and exit when the market closes on the same day.||Lots of opportunities to trade so that more opportunities also get profit or loss.||Transaction costs are very large when compared to the type of long term and short term because the more trading positions the greater the cost (spread) must be issued.|
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, you will need more ability to manage margins and apply risk management ( stop loss ).
Anyway, whatever time frame you will use, please adjust it to your personal abilities, especially the time you can spend on forex trading. And do not impose your conditions on the forex market because it will be very painful.
Also remember that time frame selection is closely related to your psychology in the face of uncertain market conditions. Because certainty in the forex market is uncertainty itself.