Trading Timeframes from Entry to Exit Points

Strategy is essential when you start trading, and part of that strategy is using timeframes. A timeframe is the relative amount of time that you expect to spend in a share. Each time frame displays the same data, but in different intervals. Examples of intraday timeframes are 60-minute, 30-minute, 15-minute, 10-minute, 5-minute, 3-minute, and 1-minute. Typical preferred share trading time frames are longer: monthly, weekly and daily.

Timeframe selection depends on multiple factors. Profit goals, money management, tolerance for losses, how you want to trade, under what conditions you will enter, initial stop loss, and how to manage the trade all affect timeframe decisions. For example, some traders choose a longer time frame to confirm trend and then a smaller timeframe to improve and confirm the setup.

Another crucial factor is your buy and sell share trading entry point. The simple definition of an entry point is the time you start trading, and the exit point is when you end trading (e.g. initial stop loss and profit target). When selling, the initial stop loss would be higher than the entry price. When buying, the initial stop loss would be lower than the entry price.

Experienced traders know their goals well and are confident to use multiple timeframes. For traders who are just learning the basics, however, using a single timeframe for setup, trade management, and exit is recommended. Once you get a better idea of what trade setup you are looking for, you have room to experiment.

Figure out your trading strategy, and the rest will fall into place.