Timeframe In Trading
Traders' success often depends on the timeframe that they trade according to their personality. So one of the main reasons why some traders crush is because they do not know when their proper timeframe that also suits their personality is.
In choosing the right timeframe for you, you have three choices:
1. Long Term Chart
2. Short Term Chart
3. Intraday or Day-Trading Chart
Most novice traders hurry their way through learning all about doing trades so often they end up trading within small timeframes like at 1-minute or at 5-minute charts.
After trading within small timeframes they end up being frustrated since their trading didn't go well as they expected it. The reason is simple, novice traders are trading within the wrong timeframe that does not suit their personality.
After so many attempts with 1-minute chart and 5-minute charts traders now are going for the 1-hour charts. This time the timeframe is longer and traders will have more time to examine the Forex market and at the same time traders are not rushed to make decisions.
Trading on a 1-hour chart perhaps will do them better this time. But on the other hand, there will be another trader that may find it not suitable for them to trade using a 1-hour chart.
Trading using the 1-hour chart is a little slow for some traders and they might feel like they are going to rot waiting before they can actually do the trade.
Possibly this type of trader should trade using the 10-minute chart. This 10-minute chart is just enough for the trader to decide and make a plan, this may better suit their personality.
If some think that the 1-hour chart is long enough others may not. Some traders need daily, weekly or monthly charts before they can make the trade.
Now, you might be asking what timeframe is best for you. Well, that is for you to find out. You need to know which timeframe suits you best so you can perform well in your trading business.
You need to pay attention to what kind of personality you have and from there you can base the timeframe that will be best for you and what you will be comfortable with.
Real money is involved in trading and therefore, you sometimes experience frustration if you didn't get trading right. But then again, you shouldn't feel that frustrated or pressured; make no hurry in decision making. Take everything slowly until you get the hang of it.
To know which timeframe works for you, begin with 15-minute charts and then 1-hour charts and so on until you grab the one for you.
