To know that, you need to answer another question first.
How much time do you have/want to trade, and how much time do you want your money to be exposed on the markets?
What time frame do we use?
Me and my traders usually focus on the M2 time frame.
That’s a time frame that has 2 minute per candle, so the action happens pretty quick.
You need to be trained to think and identify opportunities and exits very quick.
But that’s not really a problem once you understand and train the trading strategy,
Things just happen naturally.
It becomes part of your nature.
We opt to trade using the M2 time frame because we want our trades to last a specific amount of time.
For that we use the 8 bar rule.
What’s the 8 bar rule?
That means that a trade usually lasts for 8-10 bars, regardless of the time frame chosen to trade.
So, using a 2 minute time frame, our trades will last on average something around 16-20 minutes.
But of course, this is only an average.
We choose to focus on just 20-30 minutes a day because that way we have 30 minutes to find a good opportunity, get in and get out of the market.
The day is done after that!
Before continuing, check the following table to know the average time that your trade will last open on the market:
So, what do I need to decide?
When you are choosing the time frame that you want to use to trade, you first need to decide:
- how long do you want your money to be exposed on the market
- how much time do you have to trade per day.
If you have limited time and want to day trade, you should choose a lower time frame, like M2 or M5.
If you want to be with the markets the whole day, daytrading, you can go to a higher time frame, like M15-H1.
If you only have time to watch the markets at night, then you should opt to choose a high time frame, from H4 to Daily.
That way you only need to spend a few minutes every night to analyse your open trades and check for new opportunities on your charts.
Finally, if you only want to check your charts once a week, you should definitely opt to use the highest time frames available, like the Weekly, or even the Monthly.
Open your charts once a week to identify setups for opening new trades, and then let them run for a few weeks, or even months.