What kind of trading is most profitable for ordinary people?

[mishak]

Originally Posted by TraderABC

Which time frame is best in this case considering the spread? Anyone knows the golden ratio?

Large spread hurts traders who trade frequently because they pay spread to the broker on every round trip.
(that makes scalping so hard business)

[mishak]

Originally Posted by TraderABC

If you are doing a swing strategy with 500 pip goal using a 100 SL, you will do much better if you go down the chart timeframes

Wrong !
Each model should be developped for a particular time frame and should not be propagated too far (in time scale) and used in different time intervals.

You first choose your time frame, then build a strategy for it

[taotra]

Originally Posted by mishak

Wrong !
Each model should be developped for a particular time frame and should not be propagated too far (in time scale) and used in different time intervals.

You first choose your time frame, then build a strategy for it

Good strategies work regardless of the timeframe because what you see on a 1-min chart is the same as on a 15-min chart, or an hourly or a daily chart: namely, periods of sustained trend (up or down) and periods of consolidation.

[mishak]

Originally Posted by taotra

Good strategies work regardless of the timeframe because what you see on a 1-min chart is the same as on a 15-min chart, or an hourly or a daily chart: namely, periods of sustained trend (up or down) and periods of consolidation.

Of course you see the same on all charts - candles and your indicators set-up. However the Market lives on his own laws, different participants act on different time scales.
For example:
Nobody pays attention to MA200 on 1-min chart, however it is the important resistance (to the movement) on daily chart.

It is true that TA methods could be applied at any time frame. But they give different solutions

[MickMason]

Originally Posted by RedDuke

Demo-->Mini-->Standard - this is the only way to go. When I started, I always treated Demo as if it was real account. I never allowed myself to have huge losses because it was a fake money. That helped me a lot when I went live. If you can not make money with mini account, there is absolutely no point going to 100K lots. When I trade, I only look at pips, I do not care if it is $1 per pip or $10 or $100 … The size comes with time, assuming you are still around.

That's about the best advice of the thread! Unfortunately some people are looking for a fast buck, paper trading one week and 200:1 live trading the next, no wonder they lose!


Mick

[TraderABC]

Originally Posted by mishak

Of course you see the same on all charts - candles and your indicators set-up. However the Market lives on his own laws, different participants act on different time scales.
For example:
Nobody pays attention to MA200 on 1-min chart, however it is the important resistance (to the movement) on daily chart.

It is true that TA methods could be applied at any time frame. But they give different solutions

Could you please explain? I mean if you look at 5min and a daily chart the only difference seems that the X long trend on a daily lasts for weeks and on 5 minutes trend can last for hours and its not 500 but 50 pips or so.

Now I hold a view that anything below 20-30 pips is noise. On other hand I am not sure that market behaves properly on any tradeble timescale for a day trader...

Please reply. Thank you.