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3 Basic Forex Time Frames in Trading

Forex time frame is the time between opening a trade position and closing it. Choosing any one of them as the best Forex time frame for you to trade Forex.

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3 Basic Forex Time Frames in Trading

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  1. Basic Forex Time Frames in Trading

  2. Index 1. Forex Time Frame 2. 3 Basic Forex Time Frames in Trading 1. Long-Term Time Frame 2. Short-Term Time Frame 3. Intraday Time Frame

  3. Forex Time Frame • Forex time frame is the time within opening a trade position and closing it. • Just like our personalities are different, the pace at which a person trades in the market is also different. • Some people prefer to do things slowly and steadily, while some others enjoy the excitement of fast-paced trading activity.

  4. Nevertheless, it is wise to consider the pros and cons of those time frames before choosing any one of them as the best Forex time frame for you to trade Forex.

  5. 1. Long-Term Time Frame • This type of time frames is common among long-term traders. • A long-term trader refers to charts that show information on weekly or daily trade activities in the market. • Trades of this category last for as long as weeks, months, or years. • Beginner traders are suggested to start with the long-term time frames.

  6. The bright side of trading a long-term time frame is that it allows the trades enough time to think each trade through before taking any actions. • It is cost effective too. • A long time frame on the "not bright side", that it is a capital intensive, it involves large swings, and there might be many losses.

  7. 2. Short-Term Time Frame • This time frame is the best for traders since it opens and closes in a short time frame but not as short as 5 minutes. • A typical short-term time frame lasts for hours it might even extend to weeks sometimes.

  8. The advantage of short-term time frame is that it offers more trading opportunities to traders, and as a result offers many options to pick from. • On the downside, a short-term trade costs higher the transaction fee as there are more spreads to pay. • There is also the factor of overnight risk.

  9. 3. Intraday Time Frame • In this type of time frame, trades are held using minute charts. • Trading time start and closes at specific times, unlike in other time frames where the trade can last for more than a day. • Every trade can last for 1 minute, 5 minute and 10 minutes or so.

  10. This frame offers the plenty of advantage of trading opportunities to the traders and no such thing as overnight risk. • Its drawbacks include higher transaction costs, limited time to think things through, and limited profits.

  11. Thank You

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