Benefits of higher time frame trading
November 17, 2017 at 12:18 pm #285
You can trade Forex with a shorter timeframe and longer timeframe. These two-time frames can tell how you can make your profit in Forex. Traders who cannot wait for the profit and want to see their money grow in their account quickly uses the shorter timeframe. The shorter timeframe is when you open your trades for short time in the market. There is no waiting and you can know in a shorter time if you have made the profit. Traders also use longer timeframe when they can keep their trades open in markets for a long time.
This article is not going to tell you what timeframe is best for traders. You can use shorter timeframe and also longer timeframe. We will tell you what you can get when you are trading with the longer timeframe. You have to be the little patient as you are keeping your trades open for longer time.
Patience is the key to success in the Forex market. If you think that you will be risking too much in any single trade then you are walking down the wrong path. You need to learn from the professional traders at Saxo. Every single one of them has proper knowledge about trade management and they know very well without managing their risk they are not going to make any real progress. It’s true that if you trade the higher time frame then you will have lots of trading signals but compared to the quality in the higher time frame you will have very poor trading signals. Always focus on quality signals to improve your winning edge.
Longer term trend
There is saying in the Forex market that trend is your friend. If you want to survive the financial market then you need to trade in favor of the long-term trend. Being new to this market you don’t have to trade with real money rather you should use the demo trading account to master the art of trading. Things will be extremely complicated during the initial stage but over the period of time, everything will start making sense. Never think that you are the only one who is struggling with trading currency pair. Just develop strong patience and do your technical analysis in the higher time frame to increase your profit factors. Under no circumstances, you should be overtrading the market since it will ruin your career.
Chance to trade in volatility and be safe
This is the most premium profit of using the longer timeframe. If you are using longer timeframe, you will see that shorter timeframe traders do not trade in volatility and they will lose money. If you are trading with the longer timeframe, you can trade in markets and also you can trade in volatility. You know you are going to keep your trades open for a long time and you can have the volatility in your favor. Most of the time, longer timeframe traders trade in volatility and make the profit. Shorter timeframes traders have to wait for the market to become normal.
Make your money against the trend
Trading with the trend is very well known in Forex. You will not meet a trader who does not know this. In longer timeframe, if you place a trade against the trend and think you will lose money you can have your money back. The trend will most likely be over and you can be in your profitable trade. Traders like to make money but because they get many benefits in the longer timeframe, they like to use it even if it takes time to make money. It is good when you are making money for waiting a little time than losing your money by trying to make it quick. You will find that you can have many chances in making money in a longer timeframe and it will improve your trading in Forex. Professional traders always use longer timeframe in Forex.November 18, 2017 at 11:50 am #286
Thanks for good info, harleybennett.
Indeed, there are lots of similarities between trading in cryptocurrencies and in other types of securities. Some compare it to trading in commodities, perhaps simply due to high volatility, but I do agree that Forex could be the closest analogy.
However, I sense that there are distinct differences between cryptocurrencies and any other investment instrument. What’s your take on what those differences are?
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