Determine Your Time Frame For Trading In Forex Market

What is your time frame for trading in forex market? Do you want to opt for a very long-term outlook, and probably make a change in your portfolio once a quarter? Do you want to be a long term futures trader lasting positions for 1 to 6 months? Or perhaps you might make to make several trades each day with none lasting more than a day or two, like the swing trader. Or you want to be right in the middle of the action like the day trader?

You may have heard that one time frame for trading in forex online is better to trade than other. But it is really your own choice as well as the manner the prices move to determine the time frame for trading in online forex market. Each time frame for trading in forex displays some data but in different time intervals. With a wide choice, the most preferred Forex market time frames are: 1 day, 1 hour and 5 minute. Moreover, these time frames are excellent for beginners to get a feel about the Forex market and be familiar with it.

Daily time frame: Representing one day by each price bar, the chart will be observed once a day for any changes.

Hourly time frame: you will see new price bars appearing every hour, and hence more data for analysis.

5 minute time frame: Producing a new price bar every 5 minutes, it shows the fast changes in the forex market with greater details.

Each of the forex market time frames traded successfully and offers opportunities for profitable trading for everyone. But what time frame for trading in online forex market should you opt for will depend on your next expectations:

A. Your timing
B. Goals for profit
C. Money management

Your timing

How often are you willing to monitor charts? Every 5 minutes for several hours a day? Do you feel in control while taking decisions fast and like quickly changing prices? If yes, then opt for 5 minutes time frame charts. But if you prefer to be a little slow, go for the hourly charts, which are more reliable as they eliminate much of the noise produced.

But perhaps you have a full time job and don’t have the time to monitor your trading during the day, then daily charts would be just right for you, as the summary results can be best observed by the end of the day.

Goals for profit

Opting for smaller time frames would mean smaller profit goals set by traders for each trade. Be clear about your goals for making profit before choosing a time frame for trading in forex market.

Money management

Wins and losses are all part of trading in forex market. It is easy to manage losses on 5 min time frame and the losses too are small. The longer the time frame for trading in forex online, larger can be the losses and require wider stops to be placed.

In a nutshell, if you want to make profits with more price action and more trading opportunities, you will have to spend longer time in trading

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