Forex Traders – Short Time Frame Trading
In choosing the right time Frame to trade in, you should consider whether you enjoy the immediate (and sometimes instant) profit and loss consequence of trading in the short term, or if you prefer to establish positions and see them unfold over the next few days or weeks.
Trading In Short Time Frames
Trading in short time frames requires substantial time and your total attention because timing is of the utmost importance. Opportunities are created and lost in a manner of seconds, and a distracted trader will often find himself entering or exiting into positions at the wrong time. If you do not have the inclination to devote your exclusive time and energy in monitoring minute and hourly charts, you may not wish to consider becoming a short time frame trader.
Short time frame traders typically trade at a higher frequency with a lower profit expectation and risk per trade. As the trading time frame increases, medium and long time frame traders typically have lower trade frequencies with higher profit expectation and risk per trade.
Does Short Time Frame Trading Fit You?
An inappropriate trading time frame can cause a joyful trading experience to turn into a highly-stressful, frustrating event. Not every one is comfortable with trading like this. However, keep in mind that something stressful for one person may be an exciting challenge for another. There is no right or wrong answer, as choosing a trading time frame is a very personal decision.
Remember, you are making a crucial decision about the business of trading that you will be establishing. Life is too short to be in a position where you are constantly stressed and unhappy. Choose a time frame you are most comfortable with, and that is in line with your long term goals and aspirations.