Most forex traders have no idea how or why currency prices move and make key mistakes in the way time periods trade. In this article, we will look at three popular time periods and see what is the best time period to trade with your business strategy.
In the forex markets, all the fundamental news about supply and demand will be shown in the price action and also the opinions of all traders, so we divide the price action into 3 time periods.
The major trends in currencies that last from a few weeks to many months and reflect the economic and political health of the country’s currency. These large fundamentals are slowly changing from expansion to contraction and that is why these trends last so long.
While the big fundamentals prevail in the long run, in the short run traders ’emotions can rise or fall in prices and can be seen in intermediate trends, within the big trend that can be with the main trend or opposite to it. Typically, these trends will last from a few days to about a week.
The short-term trend
This is the action in a day and it really is not a trend, its price action simply random. In one day prices can go anywhere and they do.
What is the best time period to operate?
From the above, it is clear that negotiating long-term trends can give you the most benefits with the least amount of work. All you do is get into the trend and keep it up, but following the trend in the long run only really suits a patient and disciplined trader.
Trading medium-term trends can be very profitable and requires less patience and discipline than trading long-term trends. You can make money in both time periods and what you choose will simply depend on your personality.
I haven’t mentioned daily trading yet and it’s the most popular time period to trade, but it doesn’t offer you any real chance of success. There is a big industry that sells junk robots and others, the so-called low risk daily trading and scalping strategies, but they don’t make money and the daily traders lose.
If you want to win in forex trading, don’t make the mistake that most make and trade in the short term; trade long term and you will have the odds by your side and you will be able to get a fantastic second income.