Why You Should Start Your Trading With A Long Timeframe
Most traders like to start their trading blazingly fast and make an empire out of their trade profit. Trading in Forex is not like that. You have to trade the market with patience and only then you can make a profit. Trading in Forex starts with two fundamental bases.
First, you can start your trading in a short timeframe. Second, you can start to trade by trading in a short timeframe. In Forex industry, traders like to get rich and they cannot wait for the profit. As a result, all of the beginner traders start their career by trading with small time frame.
Trading With A Long Timeframe
You should not do that, even the most experienced traders in the United Kingdom use the higher time frame to trade. When you trade the higher time frame you have a better chance of winning the trade as lots of false trading signals are eliminated in the higher time frame.
On the contrary, if you trade the lower time frame then you need to have enough trade skills and experience to filter out the best possible trading signals.
Problems of starting a career with a short timeframe
In the financial market, the traders are always losing money. Even the professional traders are also losing money. One way to stop losing money is by trading in a long timeframe.
When you trade and placing trades on the market on a longer timeframe, you have got the opportunity to hold onto your trades for a longer time.
It means that if there is volatility in the market, you can expect that this volatility will be removed from the market and your long time will smoothen the effects of market volatility on your trades.
But what happens in short time frame is traders have to take the immediate heat of the market. As a beginner trader, it is a really bad idea to start your trading.
You will lose your money very fast and before you can even start understanding the fundamental strategies of Forex, you will see that you have no money in your account. This is one problem that you will have when you are going to start your Forex trading with a short timeframe.
Experience and knowledge
There is another problem which is experience and knowledge. You cannot know the Forex market if you do not trade by using your online trading platform.
If you spend a year trading on this market, you will know many things which were completely unknown to you in your beginning times. Also, short time frame needs the traders to have a very deep knowledge of the market.
It is not possible for the new traders to achieve this amount of knowledge in a short time. If beginners try to trade the market in short time they need to have the very fast speed of reading Forex charts and analyzing market trends.
These are not possible when you are a beginner in Forex industry and this why you should not trade with the short timeframe in your beginning of a career in this industry. Some of you might tell about the professional scalpers in the financial world.
Indeed, it’s true that the professional scalpers are making a huge amount of money but you have considered their trade experience also. Most of them have more than 6 years of practical trading experience with real money.
Over the period of time, they have gained the perfect knowledge of sentiment analysis which keeps them one ahead from the novice traders. So don’t jump into short time frame at your initial stage.
Summary: Trading the higher time frame has always been profitable for the traders. Those who trade the market as their full time professional are always using the higher time frame to find quality trade setup. So try to follow the path of successful traders to become an expert in this industry.
