Saturday, December 21, 2013

Time frames to use when trading

What time frames to use when trading stocks or forex markets Traders need to take into account their risk and rewards is selecting a time frame. You need to know how to set your stops and take profit in the different time frames you are trading. If the trend is moving and the buyers are active and you place a trade then you need to set your stop outside of the time frame. This will make sure you are protecting your money. It is important to know where to place your stop and leave it.
  The same type of trading applies whether you are long or short the position. Especially if there is a strong trend in place. Make sure you have researched the entry and exits of the trade. If the trade seems more risky you can reduce the amount you are trading. If you are trading stocks you can look for a cheaper stock because they often trade in smaller time frames. Keep your stops close to the support and resistance levels when making a riskier trade.
  New traders need to learn this since they think it is nothing but easy money to be made. Traders need to keep losses to a minimum and let their winning trades run, using a trailing stop. New traders have a common problem of fear and greed. Their are in desperate need to make profitable trades all the time, so the new trader fails to understand that it is a must to control losses all the time when in a trade and make the most of things when the trade is in the money
Trading time frames