Forex Trading - The Right Timeframe For Your Forex Trades

As you are making your way through forex education, you will most likely come across the issue of finding the right timeframe for you. If you have come this far, you should already have your basics down pat with only trading practices left to be tweaked to your own trading style at this point. As far as trading timeframe is concerned, you should check to see that it matches your personality. There are forex traders who trade 1-minute and 5-minute charts, and there are some who trade on daily or even weekly charts. The timeframe at which you wish to trade really depends on what you feel comfortable with.

There are generally three types of forex trading timeframes: long-term, short-term, and intraday. Whichever one of these timeframes you choose should be able to match your expectation levels. The amount of capital you have available to trade is also a factor in choosing the kind of timeframe you use in forex trading. Limited capitals could benefit from the margins and stop loss possibilities in shorter timeframes. Those who wish to go for longer timeframes would need a bigger capital to deal with the market swings. More sophisticated forex traders go for multiple timeframes to work the market.

A lot of profit taking can be expected from using multiple timeframes. This allows the trader to look at the big picture rather than get tied with single timeframes that could cause them to miss new trends from other timeframes. Whichever timeframe a trader chooses to use, it helps to be well educated about the fundamentals of forex trading so that indicators are easily identified and taken advantage of.