If I say that “ANYTIME” is a good time then will it be wrong? I guess the answer will be no as the market is open 24 hours a day and it is open from Monday to Friday. The lack of a physical exchange allows the market to conduct business on 24-hour time frame across different financial centres. This is probably one of the principal reason for which market is known as an “Over-The-Counter” market.
Approaches utilised while trading in a market is one of the most important aspects of traders’ success. It is evident that sometimes certain strategies don’t work for most of the traders also. In this post, traders will get to know about best time frame for forex.
Swing trading (Trading with medium-term)
This can be considered as the best forex timeframe to trade for the traders who are in the regular day job. In this, traders will get plenty of high probability trades that will allow the traders to take profits and losses very quickly.
It is evident that swing traders mainly use time frames of 2-days to a week that enables them to study prices more accurately since market moves are not random as it is in the case of day-trading.
Traders can also learn simple swing trading system very fast and then start trading while they work for some great profits.
Day-trading (Trading with short-term)
Short-term trading time frames are considered as the best time frame forex for the beginner traders. The primary goals of this strategy are to use tight stops and to aim for small gains. But the bad thing about day trading is that it doesn’t work for long periods.
In the case of short-term trading, the price movements are mainly random, and there are a lot of variables involved which have nothing to do with the trend. In this, no one can predict with enough consistency that what the prices will do on an immediate period.
Day-traders mainly take a number of positions, and it only intensifies their costs and impacts their earnings.
Trend-trending (Trading with long-term)
It is evident that on large time frames, currency pairs trend well. If traders are having discipline and the right education, then they can make huge gains. It is also the most cost-efficient and saves time as the traders don't have to take a number of trades.
It is important to note that trends in the currency market are basically related to the countries’ economies which make them last for longer period of time such as weeks, months and sometimes even for years also.
But the only thing which is highly essential for long-term trading is a lot of discipline and patience since traders have to wait for longer period of time (from months to years) in order to cash their profits. Also, occasional drawdown can affect the nerves of many peoples. But if the traders have what it takes, this is the road to huge gains.
So, these were the best time frame trade forex used in trading. Hope, readers have understood the entire concept. Still, if anyone of them has any doubts, then they can share with us through the comments section below.