Lower Time Frame comprised of 1-minute to 15-minute Chart. Still trading in a lower time frame will get the chance people to find many trading options, it is not preferable for newcomers and intermediate level investors. The movements of value action in lower time frames are quick, which makes it more dangerous to trade them. Also, the investors will have to make sure he is sitting in front of the screen during the trading hours to monitor and modify his position. If the person does other jobs, sitting in front of the screen for a long time is not possible. Let’s know about the disadvantages of a lower timeframe.
Fewer Wins and More Loss
Investors are required to make a quick decision, so they make more mistakes. In the trading field, it is difficult to handle the situation quickly. If you fail to manage the risk, it is not possible to control the situation. To cope up with the situation, it is necessary to take some time. But, most of the time, people do not get the chance to do this in high-frequency trading. People should develop a good risk management strategy so that they can be able to manage the risk. When the person will be able to do this, it will be possible for him to gain success. So, people should be aware of this fact before making any decision.
In the trading field, it is necessary to do fewer mistakes. But, here, the person does various types of mistakes. So, people should learn to make quick decisions logically. When you will be able to do so, you will be able to make money. To increase the probability of a losing streak, the person should try to make a good plan. Here, the investors should avoid overtrading as it is the reason behind the loss. This also increases the cost. Here, the person gets more chances for trading. So, he is not able to control the mind and do this. When you are trying to trade continuously, it is not possible to secure capital. People should focus on increasing the capital rather than decreasing it. For this, you have to learn to limit the trade in futures trading. Always focus on quality rather than quantity to execute better trades.
Psychological Effect
Because of lots of pressure, people are needed to deal with lots of emotional components. When the person will be able to ignore the psychological complexities, it will be possible for him to achieve the target. In the trading field, people should be able to think with a cool brain. If you have less ability to deal with emotions, you should not trade on the lower timeframe. If you do so, you might face a huge Loss. So, people should try to control their emotions.
For this, they have to invest time in improving their skills and try to increase the cognition level. When the person will be able to deal with the negative emotional components, he will be able to get better results. In the lower time frame, the price movement of the currency pair is so fast, so, it is difficult to control the emotions. When the person sees that the market is changing rapidly, he does not be able to become stable. So, he should learn to cope up with this situation to get the benefits.
People can choose their style. But, they should know the pros and cons of the timeframe. Some investors prefer to trade with a lower time frame, and some of them prefer to trade with a higher time frame. If the person feels comfortable with the specific one, he should choose this. On the other hand, it will create huge problems. In the trading field, it is necessary to perform well. When the investor will be able to do this, he will be able to make money.
