Breakdowns of Forex Time Frames
Everything that you do depends on you and your level of comfort when it comes down to making the trades and breaking the entire time frames down to fit what you want, when it comes to the market. If you like to take things slow and then find out that some of the longer time frames might be the best thing for you to trade on, or if you cannot sit still then maybe you should try out the shorter time frames. It all depends on what you can handle and what does not overwhelm you.
There are differences for each time frame, and below there is a chart that shows each difference for each of the time frames:
You have to keep in mind the capital that you’re trading, and the amount you have. If you use shorter time frames, you have the ability to make better use of the margin and have a tighter stop to any losses. If you trade with larger time frames then it requires bigger stops which means you need to have a bigger account. This is because you need something to handle any of the market swings that come your way without having to face a margin call.
Whatever time frame works best for you depends on what type of personality that you have, and what time you have on your hands. If you do not feel that the time you check out fits, then you need to find out which one does by checking them all out.
Demo trading is strongly suggested, using all of the time frames, since you want to be able to find the comfort zone that fits you while trading. This helps you determine which works best for you, and also allows you to find out without having to put actual money down on it. Once you decide on the time frame, you can then look at the different time frames to analyze the market at hand.