Which Timeframe Suits Beginners

The issue of beginning
to trade is surrounded by argument. Unfortunately, there is no final truth,
otherwise much more people will be making money in the market. However,
beginners still need some advice, trading options as landmarks on their
complicated way. The first question that a beginners asks in the market is
which timeframe is suitable for them.

Again there is no
unequivocal answer, yet there are principles of each trading style and
timeframe. Knowing them, a beginner will have less trouble deciding which one
to choose. Moreover, knowing their character and personal traits, the trader
can make parallels between them and certain trading styles.

Let us start with two
or three popular trading timeframes,
often recommended for beginners. They are D1, H4, and sometimes W1 (which are
the daily, four-hour, and weekly TFs, respectively).

What D1 gives us

D1 allows for trading
just candlestick patterns, i.e. the situation on the chart is considered only
after the candlestick closes (once a day). Trading patterns that consist of
several candlesticks is rather difficult because they need time to form.

The
best part here is that trading requires from the market player 20–30 minutes a
day. If the trader has a lot of instruments (100 and more), this means 10–20 trades
a month. If the trades are of good quality, they bring a substantial revenue of
5-15% a month.

The issue is, trades in
D1 do not close in a day or two. Profitable positions might remain open for a
month, or two, or sometimes even three. It must also be said that for those
trading this way having other tasks is essential.

Something has to get the
trader distracted from the market, so that they did not look up the trading
terminal 29 times a day. The only time when they need to remember about the market
is the closing of the daily candlestick. A more or
less large deposit will be good because profit might be not that large due to
the scarcity of signals.

Advantages and
drawbacks of trading by D1

The main advantage of
such trading is having time to take a calm look at the market, analyze risks,
and even seek someone’s advice before opening a position.

The main drawback is
that you will be gaining experience much slower than with scalping or
day-trading. Of course, some traders manage to make 20 trades a month, but for
D1 this is the limit, something like machine gun shooting.

scalper

A word about H4 and W1

What about H4 and W1?
D1 is the main TF for positional trading,
while H4 and W1 are certain deviations from it depending on the style of the
positional trader. In other words, if signals are few but you do not want to
switch to intraday trading,
try out H4 that produces 6 candlesticks in 24 hours. Also, H4 is useful for
entering D1 combinations more accurately. This helps to reduce risks and
increase the trader’s potential.

W1 is for those who
have a lot of patience, work with lots of instruments (200 and more), and
generally belong more to investors than traders. Expected length of trades on
this TF is 6 months and more. Here, one needs to hit the goal precisely because
losing trades can remain open for a couple of months for no good.

pro

So, if one enjoys their
life and want a passive income, D1 will suit them best. Also, if the trader is
already experienced but tired of constantly monitoring the market, it is time
to switch to D1. However, this TF is not the best option for those who imagine
trading as constant control over the situation and every price movement.

By Dmitriy Gurkovskiy,
Chief Analyst at RoboForex

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