Learning Forex "Timeframe/Spread/Stop loss/Take profit"(Episode-6)

Welcome again everyone,
hope you are all doing great.This is 6th consecutive article on the "Forex learning". I am starting to enjoy to write about this topic. Hope, you guys also find its interesting. For the people, who just got here today, this is my successive article on Forex learning. This one is the "Sixth/6th"one. Here the previous ones-

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1.Learning Forex
2.Learning Forex
3.Learning Forex
4.Learning Forex
5.Learning Forex

Well, I am going to discuss some important matters related to trading in the market. Let's start today's part

Timeframe:

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We can know about the price increase or decrease in price by a timeframe for a specific 5 minutes, 15 minutes, 1 hour, 1 week or 1 month. If we look at 5-minute candle, then we can understand it-

#The started price of a candle.
#The closed price of the candle.
#The highest price of in 5 minutes and the lowest of it.

Typically the following time-frames are more used because they are given in Meta-trader 4. But Meta-trader 5 allows you to use more custom time-frame.

*M1
*M5
*M15
*M30
*H1
*H4
*D1
*W1
*MN

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When you look at any 1 candle of a specific timeframe, you can understand how the price movement was at that time.

Which Time Frame Should I Use?
It depends on what kind of trades you want to trade. If you prefer scalping, you should trade on M1, M5 or M15. If you want to trade on a general or a longer term, you should trade on M30, H1 or H4. If you are interested in trading swings or positions, then, week or month timeframes should be analyzed.

Spreads:
When you open a trade, you will see that the trade will open somewhat in Loss. This is called spread. To open a trade, the forex broker cut this fee as commission or charge.Suppose you did the GBPUSD by 1.7445, but it would be open at 1.7449, which means 3 pips are applicable as fees. If you open the trade with $ 1 pips value, the trade will open in $ 3 loss.

The spreads are different in pairs. In different brokers, spreads also may differ. Such as EURUSD's spread of 3 pips on Instaforex. But EURUSD Spreads 2 Pips at Fxoptimax. Some pairs of spreads may be up to 30 pips or more. So, you should check how much spread it is charging, trading in unfamiliar pairs.

Stop loss and Take profits:

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#Stop loss: With Stop Loss, you can adjust your loss trades at any particular price as you wish.

#Take profit: With Take Profit, you can decide on any price you want to close the trades, which are on your profits.

Suppose, you opened a buy trade in 1.3540. You want to get 50 pips and do not lose more than 50 pips. Then you can set 50 Pips Stop Loss and 50 Pips Take Profit. If your computer is shut down or the price of a spike suddenly decreases or increases, stop loss or take profits will automatically close your trade.

Well this is all for today! I am not going to put any more in it. Let's talk about the later part in the next one. Feel free to leave a comment, if you have any queries. I will try my best to give you the desired answer.

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