What time-frame to trade?

Last week, I have received a few emails from aspiring traders asking me if
it’s better to day-trade, position-trade or long-term trade. In case you are
wondering about that too, read on.

First of all, this is a very relative question. It really depends on how
well your heart and stomach (or even pocket)
can endure the uncertainty of leaving your positions open. If you are the
sort who likes to take advantage of the forex market’s many explosive short-term
moves, and can devote more time to analysing data and charts, then day-trading
might be your niche. If you are too fearful of being stopped out by short-term
volatility, and prefer to ride for a few days on a trend that you believe will
continue, and don’t like to monitor the market second-by-second, consider position-trading.
For those who like to be detached almost completely from the day-to-day analysis
of the global financial markets, have a strong heart and stomach for those frightening
counter/reversal-moves and a deeper pocket, long-term might be your thing.

First try to trade with various time-frames to get an idea of what time-frame
you love or loathe, and what you are the most emotionally,
physically and financially comfortable with. The time-frame should
suit you, not the other way round.

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