Learn What Time Frame to Trade. Gold Forex Trading Basics
If you just started trading, you are probably wondering how to choose a trading time frame.
In the today's post, I will go through the common time frames, and explain when to apply them.
1m; 5m, 15m Time Frames
These 4 t.f's are very rapid and are primarily applied by scalpers .
If your goal is to catch quick ebbs and flows within a trading session, that is a perfect selection for you.
30m, 1H Time Frame
These 2 are perfectly suited for day traders.
Executing the analysis and opening the trades on these time frames,
you will be able to catch the moves within a trading day.
4h, Daily Time Frames
These time frames are relatively slow .
They are mostly applied by swing traders, who aim to trade the moves that last from several days to several weeks.
Weekly, Monthly Time Frames
These time frames reveal long-term historical perspective and are mostly used by investors and position traders.
If your goal is to look for buy & hold assets, these time frames will help you to make a reasonable decision.
📝When you are choosing a time frame to trade, consider the following factors :
1️⃣ - Time Availability
How much time daily/weekly are you able to sacrifice on trading?
Remember a simple rule: lower is the time frame, more time it requires for management.
2️⃣ - Risk Tolerance
Smaller time frames usually involve higher risk,
while longer-term time frames are considered to be more conservative and stable.
3️⃣ - Your Trading Goals
If you are planning to benefit from short term price fluctuations you should concentrate your attention on lower time frames,
while investing and long-term capital accumulation suite for higher time frames.
Time frame selection is nuanced and a complex topic. However, I believe that these simple rules and factors will help you to correctly choose the one for you.
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