The Right Trading Time Frames

forex-right-time-frames.jpgMost new traders opening a trade using the 5 minute chart and when the market moves against them, they move to the 15 minute chart hoping to stay a little longer, pray that the market will turn around.

Then if the market continues to move against them, they move out to the hourly chart to look for a reason to stay in the trade. As the market continues to move against them, they shift to the daily chart to hope to find a reason to stay in the trade. The next step is to get a margin call because they have no funds left to maintain their position.

Many new traders think that losing a trade means that they are losers or that they aren’t smart enough to trade. Pro traders understand that if they trade, they will have some losing trades. Taking a loss does not mean that you do not know what you are doing.

Switching time frames to justify staying in a trade is not how you keep your losses small. Identify your exit point before you get into the trade and stick to it. Be consistent in your approach and stay in one time frame from the beginning of the trade to the end of the trade.

 

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