What’s The Best Timeframe to Trade In?

From:
Harry

Message:
Hi

I work for a company that sales EAs and Manuals for the forex market,
this introduced me to forex, I’m doing a demo account right now for 2
months and so far this year I have been successful with getting less
losses, I just would like to ask what time frame can you recommend for
new traders like me? What would be my main chart to look at? right now
I look at 15M,1H,4H and Daily, which of those should be the main
chart?

My Response:

Hello Harry. Thank you for dropping by an email. Let me answer your questions one by one.

1. I just would like to ask what time frame can you recommend for
new traders like me?

For new traders, the longer the timeframe the better. So think of daily, weekly and monthly charts. It can be quite boring waiting for the bars to unfold but there’s a reason behind why you would want to stick at longer timeframe for a long time.

The longer the charts, the more accurate the signals become. If you’re using technical analysis, you’ll realize this. The patterns a clearer and you’ll have more wins because of this. The only problem with trading at longer charts is that you’ll be fighting yourself and being patient.

2. What would be my main chart to look at? right now
I look at 15M,1H,4H and Daily, which of those should be the main
chart?

I think, for now, you should focus on daily. Do not trade at shorter timeframe unless you have your technical skills, psychology, money management and trading system fully tested. The lower you go, the harder it is to decipher the signals. The chart is prone to noise and it would be a lot harder to know if the signal is genuine or just an influx of the market.

  • Harry

    Hi, thank you for the kind reply, it make sense, i saw a vid and a lot of the successful traders do the daily chart. or longer trades. I hope you don’t mind me asking how many pips per day do you get and what would be the best goal to reach if I do a daily chart. because my goal before was to atleast get 40 pips per day with 0.20

  • ForexPhil

    Hi Harry, your first goal should be to break even. To not end up in the red for a month. You should evaluate your trading every month if you want to do daily charts. For the reason that you can not accurately gauge a per day trading. You might still be inside a trade and it has been 7 days. So you can not say you did 30 pips for that day because you are still in the trade. It happens.

    So i think first thing is to not lose money for a month. To break even.

    Then your next goal should be at least 50 pips a month. Then adjust from there. If you can get more than that then more power to you. 50 pips on daily chart is very easy to achieve.

  • jamin

    Sir can you pls give us your thoughts about holding on to open trades for as long as 5 months, i checked the open trades of the best traders in etoro and found out that they keep holding on their trades open that long. what can you advise us about it?

  • ForexPhil

    That’s where you should aim for. Being on long term trades. That’s where the money is at.