We hear and see it all the time" this time frame is better than that one and so on and so forth". So how do you pick the right time frame? There are a few different ways and it ultimately boils down to you as the trader find out what works best for YOU.
What many traders don't realize is what works for someone else might not work for you. You might need to make a few small tweaks. Before we get to picking the right time frame lets first go over some basics.
When we say " time frame" what are we talking about. We when mention the word "time frame" we are talking about your chart and how it is displaying data. For example we have an unlimited amount of time frames. Some time frames will be a minute or time based chart such as a 5 minute or 60 minute chart. Other time frames could volume based or even tick based. We won't debate the difference of these in today's blog but deep down every one knows tick based charts rain supreme when it comes to futures.
Now that we know the basics of what time frames are how can they make or break traders.
We are going to look at a trader named "trade A" he will be using a 3500 tick chart
Trader A is using a 3500 tick chart because that is what he saw on a YouTube video. He is going to simply copy everything other successful traders are doing in hopes on becoming successful himself. This is good in theory but trader A does not fully understand why the successful trader is using a 3500 tick chart and why he's winning but trader A is not.
The reason trader A is having problems is due to the fact the 3500 tick chart is too slow for him, he is a very fast paced individual and needs a chart that is much faster. Instead of reaching out for help or signing up for our coaching program trader A continues to run into issues because he does not fully understand his trading style.
The point we are trying to convey here is each trader is different and needs to match a time frame to his/her personality. If you are just starting out it makes sense to follow what other successful traders are doing. Where you run into issues is when traders start to lose, instead of making small changes to there time frame they simply keep trading and keep losing.
If trader A would realize what type of person he is and lower his time frame to 3000 ticks and try that out for awhile. He could potentially turn things around.
This is where traders need to keep a journal of what is working and what is not working. If you are having issues with placing too many trades or not finding enough trades simply try to raise or lower your time frame. The key here is to do it gradually and document the changes, that way you will know what works and what doesn't.
We also think it is wise to give each time frame sufficient enough time to prove to you if it works or not. Each trader will have to determine what they believe is sufficient enough time to test said time frame.
In conclusion if you are just starting out it makes sense to follow other successful traders and who knows you will hopefully find the same success. If you are running into issues there is no reason to reinvent the wheel if it is working someone else, simply make small changes to fit your trading style. The key here is to be 100% honest with yourself and how you view the markets.
Comment down below on what your favorite time frame is!