Is there the best trading time?

Currency Anna 05 April 2019 Hits: 308

The best time-frame for trading. Universal. The most profitable. Undisputable. Wouldn’t that be cool of something like that existed?

Unfortunately, choosing the best time frame depends totally on every trader alone. It all depends on what traders are better suited for. Some of us were born to make short trades into a magical thing. Some of us were meant to long in the markets, but for each one of us it is sure – everything is individual.

So, how to understand what you really need?

Long trades.

Long trades can last for months. It is a slow process that can even last for years. That is how long it can get. Is better suited for larger investments and bigger accounts.

Pros:

You don’t have to watch the markets every day;
Fewer transactions mean that you rarely have to pay the spread;
You have more time to think about each trade.

Cons:

Large swings;
Usually 1 or 2 two goods a year are traded so PATIENCE is a must-have;
Bigger account needed to execute long term trades;
Frequent months when you are going to be losing.

Short trades [swing].

The longest that a short trade cam last is a week. These are the trades that are executed pretty fast when compared to the long trading.

Pros:

More opportunities for trades.
Less chance of losing months.
Less reliance on one or two trades a year to make money

Cons

Transaction costs will be higher (more spreads to pay).
Overnight risk becomes a factor

Intraday.

Intraday trades are for those who prefer trades so fast that they are executed in a link of an eye. These are the trades that last for 15 minutes tops. Trade like that require high skill. Very high skill.