Tuesday, 3 September 2013

What is the best time frame for beginners to trade?

Ok, so I had this problem when I started learning to trade forex. I loved the action on the 1 minute and 5 minute charts, I loved being able to see the price moving and being right in the action, but the fun soon came to an end, sure, I had a good winning streak for about a month on a pair that was in an mad uptrend (EURAUD) but little did I know, that the trend would be coming to an end soon and I kept buying hoping it would go up.... bad move.

Now, I only trade the H4, H6, H8 and Daily time frames, sometimes weeklies depending on how strong the signal is.

So, the question, which is the best time frame for beginners to trade? Well, it's personal preference really, but, I really do believe the H4+ is best for beginners, even try and stick to the daily charts, the signals are so much stronger, support and resistance levels are defined easily and trades can be managed well.

I know you are probably thinking, but I want to make money NOW! Well, thats just not possible being honest, you might have luck for a short period of time, using lagging indicators and having your chart looking like a christmas tree might be cool and impressive looking, but does it make bank? Remember, good things come to those who wait.

What looks better here and easier to understand?

A nice clean chart using no indicators and taking a signal from a good level of support. (A 2 bar reversal trade I actually took on US Oil on the 8 hour chart)

Or this...

Motto of the story, keep it simple and clean, learn to read the price and you will succeed.

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