There is a huge variety of different types of trades and strategies that individuals can do on the Foreign Exchange Market. Individuals often times, even experienced ones, will trade by trends via upward trends, downward trends, noting lower swing highs or higher swing lows, which are all indicative of what will occur in the future. However, there are other styles of trading as well and one of the more nuanced ones is trading by time frames. Instead of merely setting a stop loss, which you still should do anyway, investors also set a time which they agree to sell things by as well. So what are some of the best time frame trading strategies?

 

Minutes

 

If you are not familiar with the market, it may seem incredible but some individuals in the FOREX market hold their assets for only a few minutes before managing to sell them at a profit. This trading strategy is known as scalping and typically they do not go for the big win or the large growth over time but instead buy by volume and sell en masse. For instance, if they buy 200 or 300 thousand shares and it goes up by a penny then they have still made money. They will often buy large quantities when they are low and then moments later offer them at a slightly higher price ensuring that they make their money back every time. These individuals are sometimes referred to as market makers.

 

Day trading

 

The time frame for day trading is between a few minutes and several hours. But for people serious in day trading, they will ensure that all their accounts are flattened out by the end of a trading day regardless of how well or poorly the individual assets did. One of the huge reasons that day traders are day traders is because it allows them to have more direct linear control over their assets. Instead of having to concern themselves about upward or downward movement, usually they’re concerned more about the downward movement, of an asset overnight, day trading allows them direct control over an asset as it moves and to take advantage of individual spikes in the market. Alternatively, a day trader could simply specify a time in which they would like an asset to be sold regardless of its up or down movement a few minutes or even a few hours into the future and still be considered a day trader.

 

Range trading

 

Range trading can go from hours to months. The goal of range trading is to utilize perceived patterns in the underlying market to guess a range in which the asset will have moved upward to the right level. For instance, a savvy investor who has noted a regular support level for a given asset and buys the asset at that level can then make an educated guess about where the resistance level for that asset will be in the future. If it usually takes the asset a couple of days weeks or even months to reach its resistance level again then by range trading he can simply set the range in which he would like to trade to occur and likely ensure that the profits will have increased as the asset goes towards its resistance level.