Best time frame for the inexperienced?

This is a discussion on Best time frame for the inexperienced? within the General Trading Chat forums, part of the T2W Archive category; I am sure there will be lots of differing opinions on this, but from my experience and from books I ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Sep 26, 2010, 9:54am   #1
Joined Sep 2009
Best time frame for the inexperienced?

I am sure there will be lots of differing opinions on this, but from my experience and from books I have read, trading the medium-term timeframes (1-2 months) is a far easier and safer route than other shorter timeframes. Some reasoning being with shorter timeframes stops need to be tighter and volatility makes life more difficult. Some book/web opinions that agree with this:
- Stan Weinstein's "Secrets for Profit in Bull and Bear Markets":
"Buying on Monday and selling on Tuesday is smart only if you want to make your broker rich"
- Robbie - The Naked Trader:
again, day trading is is fine if you want to make your broker rich...
- financial-spread-betting.com, SB company quote:
"some of our most successful clients hold for 6-8 weeks..."

Note: I'm not saying you can't be successful at short term trading, of course you can. It just seems for the novice/inexperienced trader (note not Investor), longer term is easier. However, I do think the psychological requirements and need to be in a trade
cause alot of us newbies to pick the shorter time frame.
leonarda is offline   Reply With Quote
Old Sep 26, 2010, 10:39am   #2
 
robster970's Avatar
Joined Dec 2008
Re: Best time frame for the inexperienced?

I found that trying to day trade for a while really sharpened up my trading. I've settled back to H4 now and take the odd shot intraday when it's a no-brainer. I put this down to:

1) Significant increase in screen time massively improved my exposure to PA

2) Churning the account with regular trades made me 'feel the burn' when I did stupid things which then positively reinforced my learning.

3) Helped me to improve filtering noise, improved my discipline and decision making.

Now on H4, everything is the same but a bit slower, more sedate and more considered.

I would recommend everybody have a go at it to sharpen up - it really amplifies your problem areas therefore forcing you to confront them.
robster970 is offline   Reply With Quote
Old Sep 26, 2010, 10:48am   #3
 
spy74's Avatar
Joined Sep 2008
Re: Best time frame for the inexperienced?

Quote:
Originally Posted by leonarda View Post
I am sure there will be lots of differing opinions on this, but from my experience and from books I have read, trading the medium-term timeframes (1-2 months) is a far easier and safer route than other shorter timeframes. Some reasoning being with shorter timeframes stops need to be tighter and volatility makes life more difficult. Some book/web opinions that agree with this:
- Stan Weinstein's "Secrets for Profit in Bull and Bear Markets":
"Buying on Monday and selling on Tuesday is smart only if you want to make your broker rich"
- Robbie - The Naked Trader:
again, day trading is is fine if you want to make your broker rich...
- financial-spread-betting.com, SB company quote:
"some of our most successful clients hold for 6-8 weeks..."

Note: I'm not saying you can't be successful at short term trading, of course you can. It just seems for the novice/inexperienced trader (note not Investor), longer term is easier. However, I do think the psychological requirements and need to be in a trade
cause alot of us newbies to pick the shorter time frame.
i think your time-frame depends more on your lifestyle, particularly how much time you can devote to watching the markets and placing trades, and also how engaged in the markets you want to be. Assuming you have a full time job, you could look at the weeklies and dailies in the instruments you choose and only have to spend an hour or two at night watching your charts and doing some analysis - i used these when I started out, and found it great because i only placed a trade once, maybe twice a week but i was watching the market each day for a potential set-up, which was enough to keep it interesting and keep me engaged in the markets - any longer and I'd have found it a bit boring. In regards to your stops, I think these are a function of your set-ups i.e you should place a stop where your set-up becomes invalidated, and you are highly likely to be wrong, regardless of what time-frame you choose to trade from.

hope this helps
spy74 is offline   Reply With Quote
Old Sep 26, 2010, 11:07am   #4
Joined Oct 2009
Re: Best time frame for the inexperienced?

Quote:
Originally Posted by leonarda View Post
I am sure there will be lots of differing opinions on this, but from my experience and from books I have read, trading the medium-term timeframes (1-2 months) is a far easier and safer route than other shorter timeframes. Some reasoning being with shorter timeframes stops need to be tighter and volatility makes life more difficult. Some book/web opinions that agree with this:
- Stan Weinstein's "Secrets for Profit in Bull and Bear Markets":
"Buying on Monday and selling on Tuesday is smart only if you want to make your broker rich"
- Robbie - The Naked Trader:
again, day trading is is fine if you want to make your broker rich...
- financial-spread-betting.com, SB company quote:
"some of our most successful clients hold for 6-8 weeks..."

Note: I'm not saying you can't be successful at short term trading, of course you can. It just seems for the novice/inexperienced trader (note not Investor), longer term is easier. However, I do think the psychological requirements and need to be in a trade
cause alot of us newbies to pick the shorter time frame.
If you take away the time and price axis on your chart, you will be unaware what timeframe it is, so it is irrelevant. All TF have the same characteristics, the only difference is the required reaction time of the individual user of the information.

It is natural human behavior to want to have time to make a decision, and this is the main reason why many books etc promote this idea. It is a case of having to change yourself if you want to adapt.
wallstreetwarrior87 is offline   Reply With Quote
Thanks! The following members like this post: FX Bandit
Old Sep 26, 2010, 11:07am   #5
Joined Sep 2009
Re: Best time frame for the inexperienced?

leonarda started this thread
Quote:
Originally Posted by spy74 View Post
i think your time-frame depends more on your lifestyle, particularly how much time you can devote to watching the markets and placing trades, and also how engaged in the markets you want to be. Assuming you have a full time job, you could look at the weeklies and dailies in the instruments you choose and only have to spend an hour or two at night watching your charts and doing some analysis - i used these when I started out, and found it great because i only placed a trade once, maybe twice a week but i was watching the market each day for a potential set-up, which was enough to keep it interesting and keep me engaged in the markets - any longer and I'd have found it a bit boring. In regards to your stops, I think these are a function of your set-ups i.e you should place a stop where your set-up becomes invalidated, and you are highly likely to be wrong, regardless of what time-frame you choose to trade from.

hope this helps
yes agree. Although your last point on stops actually eludes to what I was talking about longer time frames being easier. With shorter time frames you have to get your entry closer to the "invalidated" level, so as to get a good R:R, but with longer time frames your reward is larger, hence your stop can be larger for the same R:R, hence making entry easier and thus profits in general easier as long as you stick to good money management etc..
leonarda is offline   Reply With Quote
Old Sep 26, 2010, 11:18am   #6
Joined Sep 2009
Re: Best time frame for the inexperienced?

leonarda started this thread
Quote:
Originally Posted by wallstreetwarrior87 View Post
All TF have the same characteristics,
not sure I agree with this, the frequency and magnitude of volatility on a shorter time frame is more significant than longer timeframes.
leonarda is offline   Reply With Quote
Old Sep 26, 2010, 12:10pm   #7
Joined Oct 2009
Re: Best time frame for the inexperienced?

Quote:
Originally Posted by leonarda View Post
not sure I agree with this, the frequency and magnitude of volatility on a shorter time frame is more significant than longer timeframes.
Are you keeping the same scaling when you are observing this?

Why is it more significant?

Last edited by wallstreetwarrior87; Sep 26, 2010 at 12:12pm. Reason: added content
wallstreetwarrior87 is offline   Reply With Quote
Old Sep 26, 2010, 12:18pm   #8
Joined Sep 2009
Re: Best time frame for the inexperienced?

leonarda started this thread
Quote:
Originally Posted by wallstreetwarrior87 View Post
Are you keeping the same scaling when you are observing this?

Why is it more significant?
I do see what you mean.
However, I do think getting the win consistency is easier with longer time frames, as the medium term trend is more defined, whereas within a day a stock can trade pretty much all over the place. Also, what's probably the best point is that longer term you have a much better chance of catching the really BIG moves.
I do see where you're coming from though.
leonarda is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
time frame on MT4 gio.gee First Steps 0 Dec 31, 2009 9:14am
Whatís Trading time frame? Markmuffin First Steps 4 Oct 20, 2009 11:00pm
Which Chart Time Frame Do You Prefer? tommog Forex 40 Jun 23, 2008 8:13pm
Time frame question laoshi First Steps 5 Sep 14, 2006 1:58pm
Time Frame analysis Grey1 Home Trader 3 Nov 2, 2003 8:18pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)