Just thought I’d share this with you guys, got it from a trader I follow on Facebook
You can find him here:
https://web.facebook.com/realswingtrader
Trading Time Frame Psychology
Timeframes found on a price chart have a psychological element to them, which trigger different emotions within, depending on the timeframe one is viewing a price chart.
Lower time frames (1 minute - 15 Minutes) are typically associated with emotions of fear - the fear of missing out. These time frames tend to work against many aspirant traders for this very reason. FOMO means violating rules and participating in immature trade setups, because of the fear of missing out on a trade. Lower time frames by nature tend to show one exactly what they want to see despite the illegitimacy or legitimacy of the formations, this is due to the frequency at it which price formations occur. What you hope to see, you’ll likely find in lower time frames.
On the contrary, higher time frames (Daily - Monthly) trigger emotions associated with impatience - doubt. Not being sure if the market will reach the desired price point. While doubt is the order of the day, higher time frames are however the arena to play in, for a myriad of reasons. Due to their slow pace, they typically allow for sober decision-making, they free up a lot of time for other activities, and provide a view of the bigger picture among others.
The assumption out there is that fund managers jog through smaller time frames, which is, unfortunately, farther from the truth. This is because fund managers execute large orders which can be very expensive due to the costs associated with opening and closing of positions, as such they can’t afford to execute trades every 30 minutes. Another is that they capitalize on earnings momentum and capture dividends, requiring them to participate in higher time frames to better time their positions to stay in positions longer. Fund managers manage wealth for clients as such jumping in and out of positions would be hideous and against the ethos of their institutions and the principle of wealth creation. Moreover, asset allocation is not their only responsibility, they have research to do coupled with other ad-hoc day-to-day functions which lower time frames will certainly not afford them the time to participate in.
So, to you my dear friend, I say tune out of the noise of lower time frames and free yourself from the shackles of your trading platform. I’ve been there, whether from confusion when I had just started or by choice, seeking activity and accelerated returns under the guise of doing more. It’s not worth it; mentally, physically, emotionally, and financially. It’s not healthy. Stop listening to people who are isolated cases, the majority of lower time frame speculators are regularly obliterated and resort to running institutions and trading robots. You can’t make a baby overnight by impregnating nine women.