As you are making your way through forex education, you will most likely come across the issue of finding the right time frame for you. If you have come this far, you should already have your basics down pat with only trading practices left to be tweaked to your own trading style at this point. As far as trading time frame is concerned, you should check to see that it matches your personality. There are forex traders who trade 1-minute and 5-minute charts, and there are some who trade on daily or even weekly charts. The time frame at which you wish to trade really depends on what you feel comfortable with.

There are generally three types of forex trading time frames: long-term, short-term, and intraday. Whichever one of these you choose should be able to match your expectation levels. The amount of capital you have available to trade is also a factor in choosing the kind of time frame you use in forex trading. Limited capitals could benefit from the margins and stop loss capabilities in shorter time frames. Those who wish to go for longer would need a larger capital to deal with the market swings. More sophisticated forex traders go for multiple time frames to work the market.

A lot of profit taking can be expected from using multiple time frames. This allows the trader to look at the big picture rather than get tied with single time frames that could cause them to miss new trends from other time frames. Whichever time frame a trader chooses to use, it helps to be well educated about the fundamentals of forex trading so that indicators are easily identified and taken advantage of.

Source by Timothy Stevens