I’ve just been through the School of Pipsology and I’ve learned so much - thank you Babypips. I used to trade stocks and so I feel comfortable with most issues such as risk management, use of indicators etc, but the one thing I’m finding difficult (and did when trading stocks) is selecting a timeframe/trading style. I feel that I could have made better trades if I’d got the correct timeframe/style combination, so this is a key point for me.
Here’s the issue. I’m UK based and I’m free to trade all day Mondays, Tuesdays and on Wednesday morning. On Wed-Fri I could trade after 6pm UK time, but I’d prefer not to trade on Fridays or Sundays. I’ve identified I want to start trading GBP/USD. I don’t mind holding positions overnight - the average holding period of previous (stock) trades has been 20 (calendar) days. But, theoretically I could day trade on Mondays and Tuesdays (though I have no experience of day trading). About the only thing I’m clear on is that I don’t want to confuse myself with what should be a simple choice of timeframe/style.
So, given my situation, time available etc what timeframes would you choose? What style would you choose? Should I forget the fact I have Mon/Tue available to me and just trade daily charts after 6pm Mon-Thur - and if I do that is swing trading the style to follow? Or should I forget the evenings and just go for day trading on Mondays, Tuesdays (and Wednesday morning) and if so should I use 60 minute and 15 minute charts for trend identification and trade signal?
I realise there are so many questions here, but I really appreciate any advice you can give (and hope I don’t annoy you too much if I come back with more questions on the same issue).