One of the reasons rookie traders don’t perform as well as they might is that they frequently trade in the improper time period for their personality.
Because new forex traders want to make rich quickly, they will begin trading small time frames such as 1-minute or 5-minute charts.
They become dissatisfied when they trade since the time period does not suit their personality.
Some forex traders feel most at ease trading the 1-hour charts.
This time frame is longer, but not excessively so, and trade signals are fewer, but not too so.
Trading on this time frame allows you to take your time analyzing the market and not feel rushed.
On the other hand, we have a friend who would never trade in a single hour.
It would be far too slow for him, and he’d probably believe he’d rot and die before he could make a transaction.
He prefers to trade on 10-minute charts. It still provides him enough time (but not too much) to make trading-related decisions.
Another of our friends is baffled by how forex traders trade on a 1-hour chart since he believes it is too fast! He only trades daily, weekly, and monthly charts.
So, you’re probably wondering what the best time frame is for you.
It depends on your personality, if you’ve been paying attention. You must be at ease with the time frame in which you are trading.
Because real money is involved, you will always experience some pressure or irritation when participating in a trade.
That is understandable.
However, you should not believe that the reason for the stress is that things are moving too quickly for you to make decisions or too slowly for you to become frustrated.
We couldn’t keep to a time frame when we first started trading.
We began with a 15-minute chart.
Then there’s the 5-minute chart.
Then we experimented with the 1-hour, daily, and 4-hour charts.
This is normal for all beginner forex traders until they discover their comfort zone, which is why we recommend that you DEMO trade utilizing multiple time frames to see which best suits your personality.
Next Lesson: What Time Frame Is Best for Trading?
