What timeframe is better to trade on?

What timeframe is better to trade on?

What timeframe is better to trade on?

Novice traders, and not only, often wonder about which timeframe is better to trade on. It is quite difficult to give an unambiguous answer to this question, since much depends on individual preferences. But in order for You to have a General idea about this issue, we will distinguish trading styles by the time of holding an open position.

So, there are three main methods:

short-term trading;
medium-term trading;
long-term trading.


About short-term trading


Traders who prefer this style of trading use a timeframe ranging from 1 minute to several hours. Usually, trades are opened during the day and positions are not transferred to the next day. Although some speculators may work for several days, especially if the market is quiet and a significant movement is expected.

Short-term traders include scalpers, as well as pipers (in principle, this is the same thing). That is, such speculators who can hold trades for a minute. They mainly use the minute timeframe, as they need to make quick decisions

In General, short-term trading is often preferred by novice traders, believing that it is simpler than medium-term or long-term and promises large profits. In principle, from some point of view, the logic is visible here.

After all, it is true: ideally, the more trades You open, the more profit you can get as a result. However, this approach does not work in practice. Most of the lost deposits by beginners are due to the fact that they choose the wrong Forex strategy in terms of trading time.

In fact, short-term trading is very dangerous for beginners. A minute timeframe in trading does not Bode well for a beginner, because there is a lot of market noise and it is quite difficult to determine the real trend.

The strategy for an hourly timeframe can be absolutely any. The main thing is that it allows you to close a deal within a day.

Medium-term trading


When choosing a timeframe, it is impossible not to mention medium-term trading. It is conducted over a period of several weeks to several months. This is the time when transactions are held. For most newcomers, this approach seems unrealistic. Sometimes you don't even have enough patience for a week. What can I say about a few months?

Medium-term users usually choose scales from a few hours to a day's length as a TF. Strategies for daily timeframes are numerous and therefore you can always make a profit here.

What are the advantages of this trading style? First, you can use fundamental analysis. In the short term, it simply does not work, since its influence is not felt.

Second, medium-term trading is more calm and measured. Positions are opened less frequently than in short-term trading. Therefore, if You are interested in the question of which timeframe is better for a beginner to trade, you can definitely say that the daily is much better than the minute charts.

Opponents of medium-term trading usually say that it is almost impossible to earn a lot here. After all, the deal is held for a long time. During this time, you can open a lot of positions, working short-term.

But on the other hand, profit in the long term is important for a trader. Accordingly, it is easier for many people to make money on several transactions per year than to stay on the balance line of profit and loss, opening a large number of transactions. This is often the case in practice. When a trader sums up the results for the year, it turns out that a lot of short-term deals, as a result, did not yield anything. And its profit balance is around 0. Therefore, trading on daily timeframes is often more promising.

Long-term trading


A weekly or even monthly time frame is used in trading to open long-term positions. Transactions are held for several months or even years. To many, this approach seems like something out of the realm of fiction. But, in fact, this is how many investment and hedge funds work.


What timeframe is better for a beginner to trade on


It is very difficult to give an unambiguous answer to this question. You should exclude the minute ones to start with. Why? Because of the so-called market noise. It is difficult to predict on such TF. Here, more work is being done with capital and risk management.

Scalpers working on minute TF, by and large, must clearly determine the size of the risk and potential profit. Although, of course, trading systems are used to log in. But here everything is so unpredictable that you need to plan carefully.

What timeframe is better for a beginner to trade on? We can recommend starting with a daily or hourly schedule, at least. Here the fluctuations are already more stable and the market situation is better read.

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