Time Frame defines the style of Trader. every trader is different. each trader is having different styles. no one is having the same style and also traders have different strategies, different styles, and different points of view.
So a trader has to decide which time frame suits his/her.
Types of traders on basis of time frames: There are mainly three types of traders long-term, medium-term short-term.
LONGTERM TRADERS: When we talk about long-term traders. they adopt a positioning style which means a trading style in which the trader will hold on to a position for a long period. They mainly take time frames of 1 Daily or weekly. A positional trade can last from a few weeks to a couple of years.
for analyzing charts long time frames are more accurate, most long-term traders depend on fundamental analysis, as they are mostly concerned with the future outlook of the market they are trading. They do not have concerns with the intraday setups.
MEDIUM-TERM TRADERS: Medium-term traders are also known as swing traders or intraday traders. Medium-term trading requires less capital than long-term and short-term trading. In medium-term trading, there are fewer opportunities than in long-term and short-term trading. Medium-term traders hold positions for days by taking advantage of technical and fundamental analysis.
SHORT-TERM TRADERS: Short-term traders are traders who hold their positions for less than a day. They use hourly time frames for more. short terms trades are usually risky. one has proper knowledge of risk & reward ratio to become successful in this strategy. they usually trade on timeframes 4Hours to 15 minutes.
SCALPING TRADERS: scalping traders are basically known as scalpers. they are trading within the time frame of minutes to 1 hour. First, this is a style of trading that is carried out to make money from small fluctuations in price. All small amounts eventually add up to significant benefits. Continuing the frequency, scalpers trade in a number of small sequential deals. With a tight exit plan, the skull trader should be strict about the deal as one big loss can destroy many small profits made in another trade. Scalp trading strategies, thus, require self-discipline and a large amount of willpower.
