The timeframe is an important part of your trading life. If a person wants to become profitable, he should try to choose the right timeframe. Depending on this, investors are required to make a strategy. There are two types of timeframe investors can access in the Forex market. One is higher timeframe and the other is the lower timeframe. Beginners should try to choose the higher timeframe as it will help them to make money. There are various advantages of choosing this timeframe. These are explained here.
Act as a Filter
Novice traders in the Mena region should try to choose the higher timeframe as it will help to determine the trend. In a quick move, it is difficult to find out the trend. If novices look at the position traders, they will find that they can speculate the direction of the market accurately which is not seen among day traders. Position traders usually rely on the higher timeframe data since the price movements are much more stable. They also keep themselves up to date with the latest news so that they can take the right action. On the other hand, day investors are not be able to do so as they do not hold the position overnight. So, if newcomers want to get all the necessary information, they should choose position or swing trading.
Keeps the Simple Strategy
In the higher timeframe, the investors are required to keep the strategy simple. For newcomers, a simple strategy is easy to follow. A complicated strategy is not able to provide a better result as it is difficult to implement. Just making a plan is not enough for getting good rewards. Traders should know how to implement this. When people are able to regulate their trading process by taking the steps properly. Once you have a robust system, get a real account from Saxo bank UAE and start taking real trades.
In position trading, investors do not need to take on more stress. Here, you do not need to keep focusing on the market all the time. After executing the trade, you can spend time on other things. Here, people do not need to make quick moves. When people are under less pressure, they will able to do the activities properly. By loading on the pressure, it is difficult to make the right decision. The wrong decision leads you into danger. So, investors should think about their decisions twice so that they don’t make any mistakes.
Help to Increase the Patience Level
Without being patient, people are not able to trade on the higher timeframe. To be successful investors, people should try to increase their patience level. In the position approach, you need to hold the trade for weeks, months, or even years. So, if someone tries to exit the position quickly, he will fail to get the expected outcomes. Most people try hard to increase their patience but fail. But if you trade on timeframe, you will automatically learn the importance of waiting for the right opportunities. In short-term trading, people will not able to determine this as here they are required to take quick steps. So, beginners can get a better chance if they choose the long-term approach.
Make Consistent Profit
Investors can also make consistent profits through the position or swing approach. They can reduce the risk by placing wide stop-loss and take profit. It is true that, in position trading, people have less chance of executing trades but it is also beneficial to secure the capital. When you try to overtrade, you will fail to produce a better performance. Without performing better, you cannot gain the rewards. So, profitable professionals have traded on the higher timeframe.
If an investor has vast knowledge of the market, but he is always in hurry, it will be tough to stay in the market. The executives do various types of activities so that they can maintain their discipline and patience. These two traits help them to become successful.