How can you make larger profits on a longer time frame?

I always heard you can because larger pip moves, but surely this is not true. If you risk 3% of your account on any trade then a 30pip SL on a 1 hour TF will be £30 on a £1000 account. On a 1 day time frame where you might need 60 pips SL each pip profit will be half the value so I.E… 50 pip profit on the 1 hour TF will be the same as 100 pip profit on the 1 day TF.

So what Im saying is… a trade will last a lot longer on a higher TF, and for the same profits. The only reason I can see to trade the longer time frames is accuracy in Price action and for people who have day jobs.

I cant help thinking though, if profits are the same on any time frame because of Money Managment (needing bigger SL) then people trading the longer TF’s are not being provided with as many opportunities to trade.You may see a couple a week. On smaller TF’s there will be many more.

So won’t people trading longer TF’s just grow their accounts alot slower with no real benefit such as bigger profit trades?

thanks

What you need to look into is the daily range of a trade.

Longer term trades allow you to accumulate a greater number of pips. Try making 500 pips on a single day trade, now try making 500 pips over a one month trade and it becomes doable. Sure you can keep your stop loss the same in each instance.

Also some people cannot day trade each and every day, they have normal day jobs that mean they do not have the hours free. So by placing trades for weeks at a time they are overcoming this problem. Also its down to the trading approach, many people, including myself who day trade, look for specific trades, trades that may not fit on a longer time frame.

At the end of the day it all comes down to your own preference, and what you are comfortable with

You will also see that some trades which are known as ‘high probability trades’, trades that are opened at very high levels of Support or Resistance only occur perhaps once or twice a month. I myself don’t call them high probability trades, but if they work for you, then great!

You just need to look outside of the box, trading is flexible, and not only open to the individual who enjoys intense trading 50 times per day…you get my point

“How can you make larger profits on a longer time frame?” -Epidot

Speaking for myself, long term charts are more strategic than they are profitable; sometimes slower is faster.

It sure makes sense to make bigger profits if the SL is the same. That’s clear… but surely the SL must be increased on higher time frames. You might think your small SL is safe but for instance, the next “daily” bar could drop half a candle before continuing. That half a candle bar may be 100 pips. So please explain how you would expect to profit from Forex on hihger time frames when keeping your SL the same as a 5,30 min chart ? thank you