Partner CenterFind a Broker
One of the reasons newbie traders don’t do as well as they should is because they’re usually trading the wrong time frame for their personality.
New forex traders will want to get rich quickly so they’ll start trading small time frames like the 1-minute or 5-minute charts.
Then they end up getting frustrated when they trade because the time frame doesn’t fit their personality.
For some forex traders, they feel most comfortable trading the 1-hour charts.
This time frame is longer, but not too long, and trade signals are fewer, but not too few.
Trading on this time frame helps give more time to analyze the market and not feel so rushed.
On the other hand, we have a friend who could never, ever, trade in a 1-hour time frame.
It would be way too slow for him and he’d probably think he was going to rot and die before he could get in a trade.
He prefers trading a 10-minute chart. It still gives him enough time (but not too much) to make decisions based on his trading plan.
Another buddy of ours can’t figure out how forex traders trade on a 1-hour chart because he thinks it’s too fast! He trades only daily, weekly, and monthly charts.
Okay, so you’re probably asking what the right time frame is for you.
Well buddy, if you had been paying attention, it depends on your personality. You have to feel comfortable with the time frame you’re trading in.
You’ll always feel some kind of pressure or sense of frustration when you’re in a trade because real money is involved.
That’s natural.
But you shouldn’t feel that the reason for the pressure is because things are happening so fast that you find it difficult to make decisions or so slowly that you get frustrated.
When we first started trading, we couldn’t stick to a time frame.
We started with the 15-minute chart.
Then the 5-minute chart.
Then we tried the 1-hour chart, the daily chart, and the 4-hour chart.
This is natural for all new forex traders until you find your comfort zone and why we suggest that you DEMO trade using different time frames to see which fits your personality the best.
FAQs
If you have limited time and want to day trade, you should choose a lower time frame, like M1, M2, or M5. If you want to be with the markets the whole day, day trading, you can go to a higher time frame, like M15-H1.
Which timeframe is best for trading? ›
Trading at the Opening of the Market
Volatility is not all bad. The ideal amount of volatility for beginners arrives in the market after these initial extreme trades have occurred. Hence, this makes the time frame between 9:30 am to 10:30 am the ideal time to make trades.
What is the best time frame for options trading? ›
Ans: The appropriate time frame for options trading depends on your purpose and research of the trade. However, a range of 30-90 days can be a good time frame for most trades.
What time frame do most professional traders use? ›
Good examples of commonly used time frames in day trading include 1, 5, 15, 30, and 60-minute charts. Remember, choosing a trading frame that suits your strategy and trading profile is crucial. This is why practicing using different time frames in demo trading is highly recommended before making real trades.
Is a 30 minute time frame good for trading? ›
30-Minute Trading Strategies
Swing Trading: Ideal for those seeking opportunities in trends. It allows for weekly analysis and executing trades with established risk management, minimizing the time spent in the market. Day Trading: Choose assets with good daily volatility for short-term trades.
What is the 10 am rule in the stock market? ›
Some traders follow something called the "10 a.m. rule." The stock market opens for trading at 9:30 a.m., and the time between 9:30 a.m. and 10 a.m. often has significant trading volume. Traders that follow the 10 a.m. rule think a stock's price trajectory is relatively set for the day by the end of that half-hour.
What is the 15 minute rule in day trading? ›
Here is how. Let the index/stock trade for the first fifteen minutes and then use the high and low of this “fifteen minute range” as support and resistance levels. A buy signal is given when price exceeds the high of the 15 minute range after an up gap.
How far out should you trade options? ›
In general, 30-90 days is the “sweet spot” for most options trading strategies. If you're correct and the price of the underlying goes exactly where you expected, you're rewarded with quick profits. If the position doesn't work, you don't have to wait until expiration.
How long does it take to get good at option trading? ›
Well, it really depends on how much time and effort you're willing to put in. Some people might be able to pick it up in a few weeks, while others might take months or even years to fully grasp the concepts. But, one thing that can definitely speed up the learning process is by learning from the right sources.
Can you trade options before 9 30? ›
Options trading hours are 9:30 am to 4:00 pm EST, Monday through Friday. Same as regular market hours. That means that you can only trade options during regular market hours.
The closest thing to a hard-and-fast rule is that the first hour and last hour of a trading day are the busiest, offering the most opportunities. But even so, many traders are profitable in the off-times as well.
What is the simplest most profitable trading strategy? ›
One of the simplest and most widely known fundamental strategies is value investing. This strategy involves identifying undervalued assets based on their intrinsic value and holding onto them until the market recognizes their true worth.
How long should a day trader stay in a trade? ›
Day Trading (1-hour to 4-hours): Day traders hold their positions for a day or less, closing them before the market closes. Swing Trading (4-hours to daily): Swing traders hold their positions for a few days to weeks, aiming to capture larger price movements.
What timeframe is best for trading? ›
Most traders will start by choosing one longer timeframe and another shorter timeframe. As a general rule, traders use a ratio of 1:4 or 1:6 when performing multiple timeframe analysis, where a four- or six-hour chart is used as the longer timeframe, and a one-hour chart is used as the lower timeframe.
What time frame is best for option trading? ›
Every time frame is Best as long as you check entry and exit in correlation with trading time frame. This is practical approach towards market. 15 minutes time frame for options trading is best.
What is the 90 120 rule in trading? ›
For example, if you're 30 years old, subtracting your age from 120 gives you 90. Therefore, you would invest 90% of your retirement money in stocks and 10% into more consistent financial instruments. This rule creates a portfolio that gradually carries less risk.
What is the best time frame for trading chart patterns? ›
Start with a primary time frame, often daily/weekly, to identify core pattern. Then choose shorter intervals, e.g. Hourly / 15-min charts to determine accurate entry/exit points. Additionally, incorporate a longer time frame, such as a monthly chart, to assess the overall trend.
What is the best time to avoid trading? ›
The middle of the week typically shows the most movement, as the pip range widens for most of the major currency pairs. Saturdays and Sundays tend to be the least favourable days for trading forex. Most traders tend to avoid trading forex during holidays and around major news events.
What is the best time frame for investment? ›
The Weekly chart is the primary time frame for the investor; the daily is not meaningful as its time and price scope is too “small”. If the Daily trend appears to be overbought and nearing a top, but the Weekly trend is not, then the market may continue its Weekly trend move.
Is a 1 hour time frame good for swing trading? ›
Generally, the time frames for swing trading you want to use are the weekly, daily, 4-hour and 1-hour charts.
