The traders make their plans based on the time frame. Different types of people prefer different types of time frame depending on their style. When you are setting the goal, make sure in which time frame you are going to trade in the Forex market. Some investors can do well in a certain period, and unable to cope up with another one. People need to know about the pros and cons of the time frames which will help them to choose a better one for them.
Lower Time Frame
Investor substantially incorporates everything from 15 to 1 minute charts are identified as a low time frame. In this period, the businessman gets lots of trades every week or day. Everything goes quickly, and people frequently get their preferable trades. Because of the faster movements of the prices, investors always observe the computer screen so that they cannot miss the opportunity. If you choose this period, you will go through lots of pressure which will influence the decision. Here, the businessmen have to prepare for every situation. Sometimes, they cannot able to take a proper decision because of stress.
So, professionals always maintain a strategy that includes what to do if the trade does not run off, when they will withdraw some money, and what to do if the trade starts going in the right directions, and spit back at their entry. Having a plan is very crucial for the people because in this period, sentiments, and tensions can take the leading position. In this smaller time frame, people will able to know whether their analysis is right or not within an hour. They will get lots of opportunities in a short time. As an investor, you get a chance to practice more which allows making progress in the Forex market. To know more, you can become a member of Rakuten trade and read the psot of the elite traders. Soon you will learn to trade with caution. In fact, you will be able to minimize your trading cost to a great extent.
Try to be conscious about the spread as it can ingest your 20 to 30% profits. Traders need to avoid the tendency of collecting every news and attempt to adapt to the stop-loss in various types of market conditions. Your heart beats fast when the candle moves quickly. As a consequence, your entry and exit decision is influenced by the emotions. So, people need to develop their mental strength so that they can make profitable trades.
Higher Time Frame
Businessmen normally encompass all the things more than one hour to daily and weekly charts fall under this period. In this longer time, the people get a chance to analyze the market before entering the trade as the price movements are steady. The investors apply their price action knowledge to identify whether the trade is ready or there is enough time before entering it. Sometimes, it takes one hour or days to set so people need to keep a list of the trades that they are looking at. The average pip rate is very big such as traders trade can move for hundreds of pips. If any investor prefers this period, they need to maintain an economic calendar as he or she will feel the necessity of the help of news events. As the trades are slow-moving, emotions will not able to take the lead. Businessmen’s patience and a good understanding of price actions will help them to make profits. If someone does not have time to sit in front of computer screen for a long time, they can choose this. They need to invest their deposit slowly and start to learn about the price actions and news events.
Fresher need to try to trade in different time frames in the virtual market which will help them to select the right one for them.