What is the best time frame to trade in?

[fxvoilaaa]

trading longer timeframes carries less risk than shorter timeframes. Fact.

[fxvoilaaa]

By the way, for those that do make a good profit on M1, all I gotta say is, wow.

[forexdawn2010]

trading longer timeframes carries less risk than shorter timeframes. Fact.

So if I placed a short trade for example on my 4hr eurusd chart at 4250 and a second trade this time on my 5min chart at 4250, your saying that the 4hr one carrys less risk, is that the fact?

Doesn't anyone trade price anymore?

Where does this idea come from that it's safer the higher up the ladder you are?

"my life changed the moment I started trading the 4hr chart, I couldn't believe how easy my trading had become. oh thank you 4hr chart" (insert vomit smiley)

[isildur]

Isn't risk the same when you trade on a 4h chart or on a 5min chart?
I mean risk reward doesn't really change. On the lower timeframes you are trading more noise but getting more entrys. But this doesn´t mean on lower timeframes there is more risk involved.
Risk is just a "number". A percentage. This number is independent from you time frame. If you are trading a style with a hit rate of 35% on a 4h chart. Is this riskier than scalping on a 1min chart with a 60% hit rate?

[SimonTemplar]

I'm largely a trend trader, and find that easier to spot on the higher timeframes. I can also target more pips, so my R:R is often better than I manage on the lower timeframes. But you are right to suggest that people should not simply dismiss scalping as being less effective. It is not for me, but I know guys who trade predominantly scalps and they do very nicely. So perhaps we can all be 'right'?!

[dusktrader]

On the lower timeframes you are trading more noise ...

As far as I'm concerned, this is another common MYTH.

One man's NOISE is another man's TREND (or something like that).

Yes, risk is the same and timeframe is irrelevant. It's all about perspective and perception -- if you perceive a trend then you can trade it. Then again some of us trade anti-trends (ie sideways markets). The great thing about trading is that everyone is capable of finding an edge that speaks to them and everyone can make money from that edge.

[FXTrader50]

I use H1/H4 and M5 (to get a good entry position) for day trading.

It's working well for me...

[SimonTemplar]

As far as I'm concerned, this is another common MYTH.

One man's NOISE is another man's TREND (or something like that).

Yes, risk is the same and timeframe is irrelevant. It's all about perspective and perception -- if you perceive a trend then you can trade it. Then again some of us trade anti-trends (ie sideways markets). The great thing about trading is that everyone is capable of finding an edge that speaks to them and everyone can make money from that edge.

All the timeframes work, as long as one looks at more than one then I believe that profitable trading is possible on any timeframe. The lower timeframes are choppier than the higher timeframes, so some traders prefer the more stable higher timeframes, others see opportunity in the moves on the smaller timeframes, but they all offer opportunities to trade. So I do not think that there are any myths, just preferences.

[Cuddykid]

It is key to test out all the different time frames. As mentioned above though, whether your a scalper, swing trader or position trader you will need to have multiple TFs open.
The higher TF to outline the general trend (usually people have D1). And the lowest to fine tune trade entries.
Personally I use D1 to analyse general trend (where I think the market is heading in the next week say), H1 is my primary trading TF, and I use the 15min to find nice entries etc.

When I started out I thought that there was a lot of money in scalping, however as a 'newbie' this is usually a sure fire way to blow your account!
Personally, if your starting with a relatively small amount ($1000) then large swing or position trades are likely to be unsuitable since your account doesn't have the funds to cover potential losses (as large TP & SL) even with smallest lots.
I would trade looking for 30-50pips a trade with SL around 20pips.

HOWEVER - it is up to you. Find what your comfortable with.

[forexdawn2010]

Hi,
I just wanted to ask whats the best time frame to trade in for example 15min charts, hour charts or daily charts? a lot of people say its based on your personality is this true?

Also would you ever trade two time frames at once for example a daily chart and a 15 min chart?

cheers,

....bet you're so glad you asked.