This article looks at the timeframes that you can trade in on the foreign exchange.
When you look at trading on the foreign exchange you need to consider the different timeframes that you will be able to trade in. There are three timeframes that you can trade in and you need to know about them. You should consider the trading that you are able to complete and the strategies that you can use. When you know about this you will be able to determine which timeframe you are most comfortable with.
The Timeframes of the Foreign Exchange
There are three timeframes you need to know about when you trade on the forex market. These are the short, medium and long timeframes. Each timeframe has something different to offer and you need to consider this. When you look at the timeframes you have to choose the ones that you are most comfortable with. When you do this you will be able to trade more effectively on the market.
Trading in the Short-Term
There are a lot of traders who assume that the short-term is the best timeframe to trade in. This is due to the popularity of trading in this timeframe. The truth is that not all traders will be able to cope with trading on the short-term. The reason for this is the fast-paced trading that you will need to complete.
When you trade on the short-term you will also not be able to make the same profits as the longer timeframes. This is due to the fact that the trades you complete are going to be for a shorter period of time. However, you will be able to complete more trades when you use the short-term.
New traders are advised to not use the short-term because of the stress that comes with this trading. Experienced traders are generally more capable of handling the greater pressure that comes with this trading. There are a number of different strategies that you can use when you trade in this timeframe.
Trading in the Medium-Term
Medium-term trading is dominated by the use of swing trading. This is considered one of the best timeframes to trade in and the best strategy to use. Swing trading is a very easy strategy to understand and you can use it with technical and fundamental analysis. Of course, the trading will be easier if you are going to use technical analysis.
Trading in the Long-Term
There are a lot of traders who think that long-term trading is dead. This is not true as many traders still make a profit from the use of long-term trading. The length of the trading does not allow you to open very many trades. However, the profit that you make from the trades more than makes up for the small number you complete.
It is possible to trade with technical and fundamental analysis in this timeframe. Most long-term traders are going to be using the trends to trade and you need to consider this. When you trade in the long-term you will need to have the capital to buffer the movements. Long-term trends are made up of a number of smaller trends which include retracements. This means that there are positive and negative movements that you need to consider.