PART 3: What time frames are best to trade forex?

What time frames are best to trade?
Beginning forex traders often become inundated with technical and fundamental information over-load and often experience analysis-paralysis early on in their trading career as a result. One of the related problems of this analysis-paralysis involves not knowing what time frame(s) is the most effective too trade off of. Many traders get caught up looking at lower time frames because they believe they will spot more opportunities or somehow have more control over the forex market by doing so. The problem with going down to lower time frames such as 30 minute charts and below is that there is almost too much market “noise” to make an accurate trading decision. A general rule of thumb is that the higher the time frame the more accurate the trading signals become. For example, the same trading signal on a 1 hour chart and a weekly chart will have a higher probability on average of working out on the weekly chart over the 1 hour chart. So, with that being said, what are some factors to consider when deciding which time frame is best for you to trade?
• What’s your daily schedule like?
People with full-time jobs or that have very busy schedules are much more likely to find success trading longer time frames and simple forex trading strategies. Typically, people in this situation will want to concentrate on the daily chart time frames and above. This means you only need to look at your charts 1 time a day maximum. Trading in this manner can be very low-stress and more often than not traders find they are more profitable the less they interfere with their trades and stare at their charts. If you do not want to become a full-time forex trader but instead wish simply to diversify your investments or supplement your income, you will want to concentrate on daily, weekly, monthly, and yearly chart setups.
Those traders who are aspiring to become professional forex traders may wish to use the 4 hour, 1 hour charts or lower to time their entry and exit decisions more precisely. However, keep in mind that going down in time frame often brings with it a higher likely hood of inducing emotional trading mistakes such as those brought on by fear and greed. Do not attempt to day trade the forex market until you have become proficient at higher-time frame trading and have successfully built up the funds in your trading account.      By:http://www.forextradingstrategies.org