The timeframe is the most anticipated object in Forex as investors cannot find out their prospects. Many believe using a strategy is the key to success but without the proper timeframe, it is impossible to know what is happening in the market. From that perspective, you need to select the proper timeframes. This is where the community is confused. As this is an online market, there is no way to find out what is the right information.
People may try to go online and verify the sources but the doubts remain. This is part of finance as traders need to take up chances. This results in easy manipulation of the investors and they lose the capital. In this article, we are going to describe a few myths that have intrigued the public for years.
Before you start believing in concepts, it is required to find out the facts. Trading is a risky business where losing is simpler than winning money. Most people will try to motivate but it is the stakeholder who has the risks. Don’t take decisions based on hunches but analyze the situations. We will only crack the mysteries but the lessons should be learned by the individuals.
A lower timeframe gives more money
The first misconception that has been rooted in the minds of traders is about the lower timeframe. When using this particular timeline, people are exposed to the market in a short period. They don’t know how the market has changed over a long time. This confuses them and they often make the wrong decisions. What is even riskier is the partial image of the overall market movements. This is where the concept of more money comes. As they view every volatility as an opportunity, the investors begin to lose their minds. They begin to favor this method and slowly lose their strategy.
All the techniques are developed thinking of long-term results, apart from the specific methods which require a short time. Money is not related to this timeframe. If you can place e a good trade, the money will come to your account. To know more about the importance of quality trade execution, you may view website of Saxo. Go through their free educational resources and try to develop your skills. Once you develop a strong understanding about this market, you will no longer feel interested in taking the trades in the lower time frame.
The lower timeframe has more opportunity
The majority believes this because they like to have the opportunity. Trading is seen as a lucrative profession where dreams can be achieved with minimal effort. In a practical sense, it takes more than determination. Traders need to analyze the situations, know the economy and use a proper technique to make a profit. A shorter window gives more intense development of the market and hence the myth. You will find there is no difference. The chance of loss increases because you only have a particle understanding of the volatility.
Any timeframe can be used in Forex
Considering the market has diverse trends and the community is interested to apply their methods, this is not possible that any timeframe will serve the purpose. For example, when implementing a long-term method, you need to select the higher timeframe. This requires the trader to know what might happen in the future. Using the minute window is useless. Before you have made the plan, make sure to know which window is perfect. This will not happen in a day because investors need time to perfect the technique.
Choice is yours
As an ETF trader, you will find many options in your trading career. But you have to select the path based on your personality and depth of knowledge. Never try to follow the professional traders blindly. Every trader is different in this industry. So, have faith in your own opinion when it comes to retail trading profession.