Stock Market TimelineStock Market For Beginners:Understanding the 1 Minute Stock Market Timeline
The brightest, fastest and most experienced stock market traders focus on the 1 minute time frame for most of their trading activities. While these astute traders mainly use the 1minute time frame to enter and exist trades, they do, however, use the 5 and 15 minute time frame to get a feel of the up coming direction that stock is likely to take. Not to say that as a beginner stock market trader you cannot trade the 1 minute time frame, however, in our experience, the 1 minute time frame gets traders so confused and eventually traders end up losing money.Because we have to adhere to the SEC rules, we cannot advise any stock market investor or trader to either trade nor not trade the 1 minute chart. We can, however, tell you a little story to illustrate our experience with the 1 minute chart. When we first started trading, it was so exciting to be in and out of the market, we thought to ourselves “gosh we are now professional”. Little did we know. Our first month of trading the 1 minute chart, we racked up about $5000.00 worth of commission and fees.It was not fun, I think we made about $2000.00, however, due to the commission and fees we were negative for the month. We realized after 2 months that we would lose all our capital to fees and commission if we carried on in this fashion. Long story, short: you can make as much money and sometimes even more if you start your trading career on a higher time frame. Leave the 1 minute time frame to market makers specialists.Lets say for example you have the bladder of a cow and you just love action. Your idea of trading is constantly being in and out of the market. Here are some advantages for trading the 1 minute time frame. Advantages of 1 min chart (1 min Stock Market Timeline)
The 1 min chart is an amazing time frame for traders who enjoy scalping the market or stocks for little gains at a time. Traders who usually scalp a stock are very happy and content with acquiring 10-15cents at a time and selling the stock in the flash of a lighting. These traders always have their eye on stocks waiting for the next move in the stock.
Disadvantages of the 1 min chart (1 min Stock Market Timeline)
When you first start trading you don’t have the experience and the accuracy to know your levels of support and resistance in less than 30seconds. Unless you are a genius, how do you know where the stock will reverse on the 1 min chart. In our experience we found ourselves over trading. Some stocks have .50cent, to a $1 pull backs. This is exciting for a trader as they realize that in less than 3 minutes they can make a $1 on a stock trade, however, what if you are the lucky trader who gets caught buying the pull back. Even though the pull back in on a 1 min chart, or 1 min time frame, you end up not trusting your trade because it seems to be not working out, since the stock is pulling back so far. We don’t want to be sounding pessimistic and discourage beginning traders to stay away from the 1min chart, however, throughout the years of trading we realized that unless you were the impatient type of trader that cannot sit still, it’s better you trade a different time frame.
How to Invest in Stocks : Daily Tips and LearningThe goal of this website is to bridge the gap between the learning and the stock trading experience. To make that gap easier to bridge for all who participate in stock market for beginners, we advise for all new traders to acquire the Basics of Stock Market Investing....read more |
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