Hello there! Now, for those of you that have been following my channel for the
last couple years or so. You have seen that I've done loads of videos covering
multiple topics in all areas of trading. And I was lying in bed this morning and
I was in a bit of a quandary as to what topic I should cover in this week's
video. anyway got to my desk of you fired up my screens and went straight into the
Forex signals website I would start my day by doing this no we start my day by
going straight to the messages that have been left overnight and to strike out to
me and I want to just share them with you now first one is from the first one
is a guy I don't know it's a male or female so it's pips the way from Sweden
says hi Andrew love your YouTube videos and finally decided to take the plunge
and join your community so pleased I did I can't wait to start first question
what time frame should I start on second one was from a guy called like pupils a
guy it's ER it's Clive B from Australia just says help I've been trading five
and fifteen minute time frame for about six months day in day out I failed to
make a profit I'm losing not only my money but also my days at the screen
what should I do well thank you Clive and pips the way
for helping me solve my quandary today because that's what we will talk about
we'll talk about the best timeframe to use when trading the forex market
okay so as I mentioned in that short introduction we've done multiple videos
in the last couple of years or so covering all aspects of the market if
you haven't already subscribed the channel I suggest you do so that way you
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Monday 2 p.m. London time why discuss trading opportunities for
the week ahead in a live environment you can interact as well ok let's get on
with it ok so before I get into this subject let me first of all explain for
those of you that are not quite sure what I'm talking about here what a time
frame means when we trading the financial markets we generally look at
charts to see what prices done in the past to give us an idea what prices may
do in the future and we'll be looking at charts we know we look at them in three
different formats either a candlestick chart which are something like this I'll
explain in the moment what they are you've got a line chart which is
basically the closing price or you might have a bar chart which will look
something like that but in the case of a bar chart on the candlestick chart it's
basically the same each candlestick or each bar represents a period of time so
for example if we're looking at the daily chart using a candlestick each
candlestick represents price action in that particular time period so a
candlestick will show us where the market opened where it closed and if it
closes higher than mode open it's normally colored blue or green it shows
you the high and the low so this candlestick this one candlestick shows
us all the price action lots of information in that one day
normally runs from New York close 5:00 p.m. New York to 5:00 p.m. the next day
but some brokers differ in that so again on the candlestick here you've got open
here the low here the close here i should say the low here the high here
that's basically the price action in one day but when we're trading looking at
charts we don't have to look at just what happened in one day we can
drill-down we can drill right down to even one minute we can drill right out
to one month if you're looking at one month candlestick that'll basically
represent what the highs and the lows were in that month let me explain a
little bit further okay so what we've got here on the board for 15-minute
candles for this example so this is a 15-minute chart each one of these
candles represents price action in that 15 minute time period remember green
candles offer closing higher at the mode opened and red candles are closing lower
than where it opened so for this example we've opened here we've traded up on
this 15 minutes and then indeed we trade it up again on the following 15 minutes
hit this high up here okay and then we trade it down and then the final 15
minutes we close back down here so this is price action on each individual
15-minute but you may want to look at just the hourly candlestick here there
are 4 15 minutes that can be represented on the hourly chart shows the exactly
the same information but not so much detail so for example we've opened here
so you'd have them open there basically where the open is here so that would be
the open there we've closed lower than where we've opened you see here we've
opened and then we've closed lower so it would be a red candle so the closes down
here's a cost bomb of that close and of course we had a high up here so this
hourly candle here represents the same information that you see on the
15-minute chart but that just shows you more detail so that begs the question do
you want to be trading with much more detail or you that bothered about all
these individual price swings within that higher time period and so that begs
the question which is the best timeframe to use now the answer to this question
which timeframe to use is a bit more complex than you may think
I'm not simply able to say to you you should be trading the 5 minute or the 1
hour or the daily ones more profitable than the other because that's just not
the case the reason why it's not the case is because everyone's personal
circumstances and objectives are different you may have a day job and you
may have only limited amount of time to Bend in front of the screens maybe less
than an hour a day in which case you know you're looking to be trading maybe
off the higher time peerage maybe in the daily or the monthly remember when
you're trading off the daily or their monthly the amount of trade you take
over the course of the month will be a lot less there'll be few and far between
on the other hand you may have plenty of hours throughout the day to spend in
front of the screens looking for those opportunities you therefore may be able
to take five ten fifteen twenty trades a day often referred to of course as
scalping so you're looking to exploit your trading edge over a large number of
trades you might be looking at the 5-minute the 50 min or the hourly chart
now what are your objectives very very important you may be looking to grow an
account over a long period of time to pay for retirement perhaps or your
school fees in which case you may want to avoid all this noise of the lower
time pues so you be looking at the weekly and the monthly time poets of
course the trade will be few and far between but you're looking to do this
over a longer period of time now you may look to trade full-time to get a monthly
income in which case you need to make regular profits on a monthly basis in
which case you might be trading the smaller or shorter time periods like the
one hour the fifteen minutes and so forth grinding out your edge over
multiple trades taking a monthly income so the four hours is a one hour and
fifteen minute might be preferred the one thing that all these objectives have
in common is the desire to make money right that's
why we're here but for me the deciding factor on which time frame to use comes
down to one factor and that's the psychology side of trading now we all
know that psychology plays a huge part in trading and quite frankly it's the
bad psychology that's the killer of most trading accounts now trading the really
short timeframes buying and selling off the 15 minute the
5 minutes the 1 minute time period can be very emotional seeing money go in and
out of the account is emotional and money is an emotional commodity there's
lots of noise down there and sometimes you can get caught up in all this noise
so I strongly suggest if you're new to trading leave all that noise to the more
experienced trader I mean trading after all has
its own challenges so don't make it even more challenging by increasing your
emotional involvement on the shorter time poets so take a step back and trade
off the high time poets the 4-hour or the daily sure it's not going to be as
exciting is a five-minute chart but honestly if you're looking for
excitement you're gonna be far better off going to say the horses or something
like that and losing your money at least then you're gonna be with your
friends having a good time far better than sitting at home on your laptop once
you've proved yourself and your skills as a trader then and only then should
you be looking to trade the lower time peers this is purely my opinion and
finally of course you've got to consider the actual strategy itself now here
signals calm we talked about and trade live very strategies from the swing
trading day strategy down to the five-minute scalping strategy we've got
strategies for all conditions and all levels of trade up so make sure you
check those out if you haven't already done so but make sure the strategy are
using is optimized for that particular time period so Clive and pips wait I
hope I've gotten somebody to answer your questions today Clive you're struggling
on the 5 15 minute I suggested drill back up go back to the daily see how you
get on there stop bleeding money from the account I'm sure you'll find that
worth while endeavour and pips await your new trading so welcome to the room
I suggest you start by looking at the daily see how you get on there and then
we can discuss moving down to the intraday time periods should you have
some success there as always if you've enjoyed the video today give me a thumbs
up if you haven't give me a thumbs down don't forget to leave a comment I get
back to it as many as I can to forget to subscribe the channel if you haven't
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review the markets for the week ahead happy trading and good luck