There are much confused about the timeframe in the mind of traders. People may say you should trade for a shorter timeframe because it will give you the chance to make money. They may even say to use a strategy that needs a short time because it will help you to make money in the shortest possible time. It is not true and trading with smaller timeframe has many risks. You can lose your money, the trends can change and there are many risks. This article will tell you why you need to trade the industry with a longer timeframe. It may seem slow at first glimpse but as you keep trading, you will realize the blessing. There are many advantages that are only possible to get in a longer timeframe.
Facts about positional trader
The positional traders in the UK are famous for their patience. They can easily wait for weeks only to have one good trades. Unlike the rookie traders, they never place any trade without doing the proper market analysis. If you intend to change your life, you must be a position trader. On the contrary, the short-term traders are always taking unnecessary risk to earn huge amount of money. Just having access to leverage trading account doesn’t mean you will be able to secure good trades with lots. You have to rely on the probability factors of this industry.
As new investors, learn the three major types of market analysis. Start focusing on the daily time frame and spot the key trading zones in your online trading platform. Those who are trading the market by using other people trading strategy will never learn the perfect way of trading. You have to understand the one simple fact, the experience is powerful. Unless you trade all by yourself you will never gain experience. Without having experience, you will never understand the sentiment of the market. When it comes to sentiment analysis, the short-term traders always make a huge mistake and they don’t really understand why they are losing trades. But by switching to the higher time frame they can easily eliminate this problem.
You can avoid the volatility
There are many traders who have said that they were trading nicely but suddenly a change in the trend take away all their money. They did not know what happened because they were using a smaller timeframe. They only watch a small part of the trend and they did not analyze the full view. This is the result they get and they lost their investment. The trends changes without signals and people get slaughtered in the trades. If you trade with a long timeframe, the benefit that you can get is to keep your trades open. It is the reason day traders and scalpers get the first impact of the volatility. They do not get a chance to change or exit the trades and all their money is lost. If you are not an expert at volatile trading, we advise you to trade with a longer timeframe and strategy.
The chance to analyze the trends from a broader view
It is a blessing that the market has two types of timeframes. Imagine what would have happened to you if there were only smaller timeframes. People would use them and lost all of their capital. If you are using scalping or day trading strategy, we would say to stop using them. They are risky and they need knowledge of the professional level. Not much people have this and as a result, they get the money out of the account from the traders. The past trends of this industry repeat themselves and without knowing what has happened in the past, you cannot predict your future trends. There will always be some mistakes but do not lose hope as you are analyzing from a broader view. Traders with smaller timeframes do not get the chances to do this in their trades.
Add a Comment