3 Advantages of Trading With a Bigger TF All Forex Traders Need To Know

Among the questions that I often receive are, "What time frame, sir?" or it sometimes reads "what time frame is good for the master trade?"

Actually choosing a time frame for trading depends a lot on your own personality. Adrenaline-hungry traders will probably use a small and short period of time like 5 minutes with multiple setups, while a calm trader is looking for a bigger, slower time frame like 4 hours and is in position for a longer period. The custom of how to trade using a large TF is also closely related to the target for the account itself. Larger, slower, and more suitable for low-risk accounts.

Even though the crowd likes fast trades, there are still 3 interesting advantages in swing trading which always uses the timeframe 4 hours and above.

# Avoid over-trading:

Trading in short timeframes means entering and exiting trades quickly. So, you can milk more trades in a short period of time. A very disciplined short term trader or day trader successfully puts himself in a remote booth, trades for a fixed period of time, and then leave the PC with a daily profit or loss target. However, not everyone is allowed to do that: quick successes give rise to the appetite for more trades and if unsuccessful is guarded, it can lead to 'over-trading' and losses. Failure to make a profit during these limited times often results in a "revenge" child situation on the market and this may lead to account closure.


#No 'noise':

When trading short term, you are more dependent on the short term trend action in the market. Such occasional movements can simplify your analysis easily. If there is any news that is issued, even though it seems only temporarily, it can change the direction of the market with the blink of an eye. In a slow period or a large time frame, this situation is less felt.

#More effective use of mass:

When trading short timeframes, you still need to look at the bigger picture too. If you are a day trader, you need to know the direction of the market for the week to make sure you don't go against the trend if the market retraces on certain days. If you are a swing trader too, you need to know the direction of the market for that month. This sometimes complicates analysis and trading. However, by using a larger time frame such as the Daily for trades, you only need to spend 20 minutes a day to analyze the direction of the market and more time can be spent on other activities with your beloved family or hobbies.