A successful trading system should be profitable on all currency pairs and time frames. The truth is though that I have better success on certain currency pairs and time frames. My story is similar to many other traders. I quickly discovered overtrading is a traders worst enemy and realized if I focused on higher time frames it helped me see the market clearer, focus, and take better trades because I forced to have patience.
I know a successful trader who average trade time is three minutes, average pips per is just over six pips, and average loss is just under two pips per trade. I share this to stress that you can be extraordinarily successful trading on small time frames. You have to be good. You better be able to drop a losing trade quickly without thinking or hesitating.
If you do choose to trade on the smaller time frames: Personally, the 4H, 8H, and Daily are the most profitable time frames to trade. For me personally this was one of the biggest reasons I began trading, so I would have the freedom to do what I wanted with my time.
Trading on the higher time frames means I have to be more patient for a trade setup to develop but that patience helps me focus and my performance.
I have found that the best way to filter against market chop and getting into positions that go well into profit regularly is through trading the higher time frames. The 1 hour time frame is ideal for those who are actively trading the market and will be in front of the computer to watch their trades play out. If you choose to trade this time frame you have to be able to distinguish when the market is moving and when it is not. This is a scalpers time frame for forex traders.
The 4 hour time frame is excellent for taking pips out of the market when you are picking your setups and see things nicely aligned. If you have the time to watch the charts or happen to catch the market when scanning your charts and see a nice setup on the 4 hour it can provide some nice regular gains. The 8 hour time frame is my personal favorite as it bridges a gap between the daily and 4 hour time frame that provides to be an excellent filter against normal market chop or price fluctuations.
Setup 8 hour charts on Metatrader 4. The daily time frame which is ideal for those who busy with work and family that they only have very limited time to spend on the markets each day. You can spend ten minutes or so scanning the markets for new trade setups and looking over the charts and five to ten minutes placing trade orders.
The time frame you choose to trade will be one of the greatest contributions to your success or failure as a trader. One of the biggest mistakes traders make is simply over trading.
Focusing your trading on the higher time frames will help you reduce the amount of trades you take and help you develop patience. Do you work full time? Do you have a family? How much time do you want to spend in front of the computer screen?
Brainstorm for a moment. Spend the day thinking about what is your ideal schedule and what is the best time frame for you to trade. Above of all I am a husband, a father.
I am also a trader with a great passion for the markets. Most of all how to profit from them. I am an 8 hr man myself as it helps me manage my time better and get other things done.
Hi Jordan, Thank you so much for sharing your thought on this subject. You are spot on again!! I definately over traded, resulted in constant losses. It challenges me to rethink what best time frame to trade. HI Jordan A good read and useful summary! Having no experience with binary options I am unable to say. If you are looking to know where price will be in the coming hours I think this would be a helpful tool for you. Informative article and may I ad, the longer the period the more relaxed you could become in making informed decisions.
It feels wrong for new traders to wait that long, but you make it simply believable that it is the better option. The Reason I am doing so is because, the psychology and effort behind it all to succeed no matter what business you are in, stays the same.
For those of you who know a little about Forex Trading you will know that Banks and the money movers so to speak are higher time frame traders like the Daily and so on! This should provide you with a clue to what and who actually move the markets and makes the most profit doing so. Use this video tutorial to help you setup the 8 hour charts on metatrader 4, https: What are the best times?
This pair makes more money than any other Pair. Do you have a phone number for questions? The spread on this pair can be higher compared to other pairs, for example it is most likely around 4 pips. If you are trading on the larger times frames such as the daily or weekly it could work out well for you. Email or comments are the best way to reach me! I concur on the higher time frames Daily yo be precise. I started last month, using the lower time frames just to make quick cash.
I lost a lot of money. But I tried out daily time frame and discovered it works perfect. Thanks for such valuable information!! Mainly cause you still overloading. Better to learn the market first and demo trade until you are profitable. Then go with live money. Best Time Frame to Trade. Scalping on Small Time Frames I know a successful trader who average trade time is three minutes, average pips per is just over six pips, and average loss is just under two pips per trade.
For most traders this is not where they will make a living. Pros Great time frame for quick in and out trades. Good for traders who can be glued to the screen. You can get good entries and use tight stops.
Cons If the markets are trading sideways you will get many false breakouts and signals. Pick up trend changes quickly allowing you to get in or out. Provides a decent filter against normal price fluctuations. Pretty good time frame for not getting shaken out of trades during news releases. Unless markets are trending strongly higher adx you can still get caught up in market chop.
I love trading the 8 hour time frame best. It may just be the perfect time frame to trade. Pros Provides against normal market chop. Offers plenty of time for also having a life outside of trading! Sometimes that 3rd possible signal period could be in the middle of the night depending on what time zone you are in. Setup 8 hour charts on Metatrader 4 Daily Time Frame The daily time frame which is ideal for those who busy with work and family that they only have very limited time to spend on the markets each day.
Perfect for people with little time. Helps you get the bigger picture. You can be late to a change of trend. Richard April 5, at 1: Andrew Brady June 15, at 9: Nesho Marinov August 29, at Thank you for sharing your experience and helping the other. Ricky September 24, at 7: Josh September 26, at I trade binary options, does the longer time frame work well with Binary option trading too?
Jordan September 26, at 4: Leon November 10, at 2: Norman Manzon December 28, at 4: Hi Jordan, Thank you for your very helpful article. Which would you say are the best sessions to trade the 4 hour? Any one else have some input? Jordan January 7, at The overlap between the London and New York sessions are the best for the 4 hour time frame.
When trading the 8 hour time frame all 3 possible signals periods a day are best to trade. Errol April 19, at Hi there Jordan, I totally agree with you on the higher time Frame analysis and Trading.More...