Hello there! Now, for those of you thathave been following my channel for the last couple years or so.
You have seenthat I've done loads of videos covering multiple topics in all areas of trading.
And I was lying in bed this morning and I was in a bit of a quandary as to whattopic I should cover in this week's video.
anyway got to my desk of you firedup my screens and went straight into the Forex signals website I would start myday by doing this no we start my day by going straight to the messages that havebeen left overnight and to strike out to me and I want to just share them withyou now first one is from the first one is a guy I don't know it's a male orfemale so it's pips the way from Sweden says hi Andrew love your YouTube videosand finally decided to take the plunge and join your community so pleased I didI can't wait to start first question what time frame should I start on secondone was from a guy called like pupils a guy it's ER it's Clive B from Australiajust says help I've been trading five and fifteen minute time frame for aboutsix months day in day out I failed to make a profit I'm losing not only mymoney but also my days at the screen what should I dowell thank you Clive and pips the way for helping me solve my quandary todaybecause that's what we will talk about we'll talk about the best timeframe touse when trading the forex market okay so as I mentioned in that shortintroduction we've done multiple videos in the last couple of years or socovering all aspects of the market if you haven't already subscribed thechannel I suggest you do so that way you can access all the videos in one spotnow if you get that little bill notification also you're going to benotified the moment my next video has been releaseddon't forget to follow us on Instagram and indeed on facebook if you follow uson Facebook you can join me live every Monday 2 p.
m.
London timewhy discuss trading opportunities for the week ahead in a live environment youcan interact as well ok let's get on with it ok so before I get into thissubject let me first of all explain for those of you that are not quite surewhat I'm talking about here what a time frame means when we trading thefinancial markets we generally look at charts to see what prices done in thepast to give us an idea what prices may do in the future and we'll be looking atcharts we know we look at them in three different formats either a candlestickchart which are something like this I'll explain in the moment what they areyou've got a line chart which is basically the closing price or you mighthave a bar chart which will look something like that but in the case of abar chart on the candlestick chart it's basically the same each candlestick oreach bar represents a period of time so for example if we're looking at thedaily chart using a candlestick each candlestick represents price action inthat particular time period so a candlestick will show us where themarket opened where it closed and if it closes higher than mode open it'snormally colored blue or green it shows you the high and the low so thiscandlestick this one candlestick shows us all the price action lots ofinformation in that one day normally runs from New York close 5:00p.
m.
New York to 5:00 p.
m.
the next day but some brokers differ in that so againon the candlestick here you've got open here the low here the close here ishould say the low here the high here that's basically the price action in oneday but when we're trading looking at charts we don't have to look at justwhat happened in one day we can drill-down we can drill right down toeven one minute we can drill right out to one month if you're looking at onemonth candlestick that'll basically represent what the highs and the lowswere in that month let me explain a little bit further okay so what we'vegot here on the board for 15-minute candles for this example so this is a15-minute chart each one of these candles represents price action in that15 minute time period remember green candles offer closing higher at the modeopened and red candles are closing lower than where it opened so for this examplewe've opened here we've traded up on this 15 minutes and then indeed we tradeit up again on the following 15 minutes hit this high up here okay and then wetrade it down and then the final 15 minutes we close back down here so thisis price action on each individual 15-minute but you may want to look atjust the hourly candlestick here there are 4 15 minutes that can be representedon the hourly chart shows the exactly the same information but not so muchdetail so for example we've opened here so you'd have them open there basicallywhere the open is here so that would be the open there we've closed lower thanwhere we've opened you see here we've opened and then we've closed lower so itwould be a red candle so the closes down here's a cost bomb of that close and ofcourse we had a high up here so this hourly candle here represents the sameinformation that you see on the 15-minute chart but that just shows youmore detail so that begs the question do you want to be trading with much moredetail or you that bothered about all these individual price swings withinthat higher time period and so that begs the question which is the best timeframeto use now the answer to this question which timeframe to use is a bit morecomplex than you may think I'm not simply able to say to you youshould be trading the 5 minute or the 1 hour or the daily ones more profitablethan the other because that's just not the case the reason why it's not thecase is because everyone's personal circumstances and objectives aredifferent you may have a day job and you may have only limited amount of time toBend in front of the screens maybe less than an hour a day in which case youknow you're looking to be trading maybe off the higher time peerage maybe in thedaily or the monthly remember when you're trading off the daily or theirmonthly the amount of trade you take over the course of the month will be alot less there'll be few and far between on the other hand you may have plenty ofhours throughout the day to spend in front of the screens looking for thoseopportunities you therefore may be able to take five ten fifteen twenty trades aday often referred to of course as scalping so you're looking to exploityour trading edge over a large number of trades you might be looking at the5-minute the 50 min or the hourly chart now what are your objectives very veryimportant you may be looking to grow an account over a long period of time topay for retirement perhaps or your school fees in which case you may wantto avoid all this noise of the lower time pues so you be looking at theweekly and the monthly time poets of course the trade will be few and farbetween but you're looking to do this over a longer period of time now you maylook to trade full-time to get a monthly income in which case you need to makeregular profits on a monthly basis in which case you might be trading thesmaller or shorter time periods like the one hour the fifteen minutes and soforth grinding out your edge over multiple trades taking a monthly incomeso the four hours is a one hour and fifteen minute might be preferred theone thing that all these objectives have in commonis the desire to make money right that's why we're here but for me the decidingfactor on which time frame to use comes down to one factor and that's thepsychology side of trading now we all know that psychology plays a huge partin trading and quite frankly it's the bad psychology that's the killer of mosttrading accounts now trading the really short timeframesbuying and selling off the 15 minute the 5 minutes the 1 minute time period canbe very emotional seeing money go in and out of the account is emotional andmoney is an emotional commodity there's lots of noise down there and sometimesyou can get caught up in all this noise so I strongly suggest if you're new totrading leave all that noise to the more experienced traderI mean trading after all has its own challenges so don't make it evenmore challenging by increasing your emotional involvement on the shortertime poets so take a step back and trade off the high time poets the 4-hour orthe daily sure it's not going to be as exciting is a five-minute chart buthonestly if you're looking for excitement you're gonna be far betteroff going to say the horses or something like that and losing your moneyat least then you're gonna be with your friends having a good time far betterthan sitting at home on your laptop once you've proved yourself and your skillsas a trader then and only then should you be looking to trade the lower timepeers this is purely my opinion and finally of course you've got to considerthe actual strategy itself now here signals calm we talked about and tradelive very strategies from the swing trading day strategy down to thefive-minute scalping strategy we've got strategies for all conditions and alllevels of trade up so make sure you check those out if you haven't alreadydone so but make sure the strategy are using is optimized for that particulartime period so Clive and pips wait I hope I've gotten somebody to answer yourquestions today Clive you're struggling on the 5 15 minute I suggested drillback up go back to the daily see how you get on there stop bleeding money fromthe account I'm sure you'll find that worth while endeavour and pips awaityour new trading so welcome to the room I suggest you start by looking at thedaily see how you get on there and then we can discuss moving down to theintraday time periods should you have some success there as always if you'veenjoyed the video today give me a thumbs up if you haven't give me a thumbs downdon't forget to leave a comment I get back to it as many as I can to forget tosubscribe the channel if you haven't already done so and that bailnotification highlights when I release my next video follow us on Instagram andof course Facebook if you follow us on Facebook I'll see you on Monday2 p.
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at London time where we trade and review the markets for the week aheadhappy trading and good luck.
