Daily trading deadlines

Day Trading 101: When you start trading, you will need a strategy. And part of that strategy will be the amount of time you use for your professions. Of course, for day trading, your time will be less than a day.

Popular day-to-day periods are 60 minutes, 30 minutes, 15 minutes, 10 minutes, 5 minutes, 3 minutes, and 1 minute.

When you select a shorter time frame (less than 60 minutes), your average earnings are usually quite low. On the other hand, you will get more trading opportunities. When you trade for a longer period of time, your average profit per trade will be higher, but you will have fewer trading opportunities.

Shorter periods imply lower profits, but usually also a lower risk. When you start a small trading account, you may want to select a short period of time to ensure that you do not overuse your account.

However, by selecting a short time interval of 1 minute, 3 minutes, or 5 minutes, you can create a lot of “noise” caused by hedge funds, escalators, and automated trading.

You might think that you see the emerging trend as just a short manipulated move and that the trend ended as soon as it entered the market.

That’s why I recommend using 15-minute charts. This period is short enough to allow you to take pleasant indoor movements throughout the day, but it’s enough to eliminate market noise and display “real trends” correctly.

When developing a trading strategy, you should always experiment with different time periods. A trading strategy that does not work in a short period of time can operate in a shorter period of time and vice versa.

Start developing your trading strategy using 15-minute charts, and if you’re not happy with the results, change the period before changing the first entry or exit rules.

Leave a comment

Your email address will not be published. Required fields are marked *