Forex trading is not only about learning the meanings of forex terms. Do you know that most of the new traders fail to reap dividends primarily because they are unable to select the right time frame which suits their personality? In a rush to make money, most of them end up consistently avoiding the long term approach – mainly because they believe that this approach takes up a longer time to yield profits. However, as experts suggest, this is one of the most common misconceptions existing in the currency market today. Let us delve deeper into the significance of the right time frame in forex.
One-hour Trading Charts
It mostly turns out that trading with short term charts is more difficult than with the comparatively longer ones. Most of the new traders (as already mentioned, in their bid to earn quick money) opt for 1-minute or 5-minute charts that are difficult to analyze, resulting mostly in disappointment.
The one-hour trading charts, on the other hand, turn out to be suitable for most of the traders- since they give them substantial amount time to read the market but are not too long to test their patience as well. These charts turn out to be the preferred option for most of the traders out there since they offer right quantity of signals (neither too few nor too many to confuse traders).
Quite interestingly, it actually takes longer for traders to develop their strategies when they are trading with short-term charts. Come to think about it. The candlesticks in the short term charts receive less information when compared to those in the long –term charts. So, ideally all the new traders must trade with long-term charts so as to make the best use of as much information as is possible. They can gradually shift to the short term charts as they start gathering more experience in forex.
Choice of the trading charts
The choice of forex timeframe largely depends on the personality of the trader as well. For instance, though experts suggest that one-hour charts are the best options for new traders, there are some traders who don’t even have the patience to trade with them. These traders are suggested to try out the 10- minute charts instead of the 5-minute ones since the former will still give them at least some time to work on a trading plan, which the latter will not.
Then there others who might as well find the one-hour charts find too fast as well. They prefer weekly, daily or monthly charts to develop their trading strategies.
So, basically the choice of your trading charts relies heavily on your personality. Similarly the choice of trading hours (whether you want to trade during the day or night) depends on your personality as well.
Charts, Trading Hours and Brokers
If you are not able to study your own personality and select your trading charts accordingly, then you will not be able to secure desired results. The choice of the broker will also govern your trading fortunes partially. A broker is not only your connection to the currency market but also your trading partner who assists you during your difficulties. If you’re looking for a reliable broker right now, then please visit the website of CMC Markets.Fisher Sr. VP Matthew Goldhaber