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Types of currency trading in time frames


      There are several time frames in trading which distinguish the types of trading operations. Each of these types has its own peculiarities in using of analytics, trading process, making of orders. But besides technical aspects there are factors that depend on personal traits of a trader in every separate case. And it is necessary to admit that not everyone will be able to trade on all timeframes.
      Practice has shown that a trader who has found the optimal variant of the trading strategy in managing the deposit on long timeframes is sure to fail when trying to work on short timeframes and, sometimes, in scalping.
      The subtleties of short-term trading Such tendency is caused by the fact that when trading short-term trading, one has to possess completely different qualities - calmness, absence of excitement, excellent reaction to market events and some others. Besides, in this type of trading it is necessary to be able to make instant decisions, based on market situation changes. And this decision must be economically or technically justified. Therefore, it is necessary to detect the reversal points and enter the tail end of the trend, ignoring minor price fluctuations.
      The difference of long-term trading Long-term trading on Forex market has its own peculiarities as well. Here you need to be able to conduct a thorough analysis. While for intraday trading the technical analysis indicators, indicators and oscillators signals are very important, for trading in timeframes of 4 hours and more, you should learn to use the fundamental analysis readings. Studying economic indicators and news feeds is also a must for successful long-term trading.
      However, technical analysis should not be neglected. Regarding the trader's condition during such trading, it should be noted that calmness, rationality, and attentiveness are necessary. Besides, it requires good judgment and thinking outside the box, as many economic factors should be taken into account while analyzing indicator readings.
      General trading principles But no matter how different the types of time-trading are, they all have something in common that is important for any successful trading. They all lie in four basic principles of currency trading.
      First, an attempt should be made to minimize all possible risks - this is called minimizing financial risks.
      The second mandatory factor is trading strictly following the trend. What is meant here is an irresistible desire of some traders to trade in a corrective wave. Quite often it brings good results especially on long timeframes and there are even special counter-trend strategies. But more often such trading ends up in the loss of the deposit, especially in short-term trading.
      The third condition for successful trading is the ability to manage the risks. It concerns the sufficient volume of deposit into trading operation, use of leverage in margin trading, actions for losses localization. Overconfidence will only lead to the destruction of funds on the deposit, while competently placed stop-loss will save most of the funds and allow you to make up for lost time in the next transaction.
      And the last point on this list is unconditional use of your trading strategy. You should never experiment while trading on real accounts.

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