What Is The Best Timeframe To Trade When Day Trading CFDs?
Maximum profits in the shortest possible timeframe is generally what most traders are chasing when Day Trading
CFDs. My job here will be to assist you in picking the best timeframe for your CFD day Trading goals.
How to choose the right timeframe
Successful traders know the importance of using multiple time frames on their charts in order to narrow in on
the best trading setups. Maximising your entry will stem from using a short, medium and long term chart to focus on
the best entry on your time frame.
You might decide to trade off an hourly chart and use a daily and 4 hourly chart to help identify your high
probability trades. Your challenge initially is to find the 3 charting timeframes that consistently locate winning
Large wins compared to small losses
The best traders understand how vital it is to monitor how big their wins are compared to their losses and this
is commonly known as the risk and reward ratio. CFD Day Traders normally have similar size wins to losses and
traders need to be careful if the average size of a loss is greater than their wins. If you have a 1:1 risk reward
ratio then you will need a win rate well above 60%.
Recently their have been a number of Forex Robots like FAP Turbo and Forex Megadroid that claim over 95%
accuracy for picking trades. Unfotunately when you lose with these systems the losses can be very large and take
many trades to claw the loss back. Put your focus here when Day Trading Contacts for Difference
A huge challenge for short term traders is overtrading
Always remember that by not being in the market is like taking a position. Ie you have decided to wait for more
ideal risk:reward ratios. Your focus therefore should be to look for high probability set ups that allow you to
ensure your wins are at least equal to or greater than the size of your losses. Overtrading is the fastest way to
the poor house so avoid this detrimental activity at all costs.
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