Main takeaway: the 1-minute chart is for people who want to maximize their trading time with more trades and typically large position sizes with small stop losses and profit targets (but targets can be expanded if desired). Trades are using a fixed 2:1 reward to risk. You can always choose to allocate a specific amount to day trades, and leave the rest of the capital for other trades. One day trading position may use most of the available capital in the account, leaving little for other trading activities, such as swing trades. This means much of the capital in the account, including the maximum leverage, can quite easily be used even when risking only 1% or 0.5% of the account on a trade (you don’t need to risk that much, you can risk less). Position sizing for day trading stocks is capped at 4x leverage. Many forex brokers offer 30x to 50x leverage (or more in some countries). Waiting for larger profits may mean less trades throughout the day.īecause of the potential for small stop losses, position sizes can be very large.įorex position sizing may require 10, 20, or even 50x leverage…while still keeping risk on the trade to less than 1% of the account balance. A trader could use a small stop loss on the 1-minute chart and aim for large reward:risk trades. This doesn’t have to be the case, though. With trades based on smaller candles (than the higher time frames) stop losses and profit targets tend to be smaller than those used by higher time frame traders. Nice if you don’t want to spend too many hours in front of your screen. It’s possible to make several trades within a two-hour window. I use a one-minute chart to day trade the EURUSD every day, for about 1 to 2 hours per day. With the potential for more activity, a trader who doesn’t have a winning strategy can lose their capital rapidly. With a winning system, more trades means more profit and faster compounding of the account. Trading the one-minute requires nearly constant attention while trading, since bars/candles are generated every minute and trade signals can occur often (depending on the strategy).īecause price bars occur frequently, 1-minute chart traders typically have the opportunity to take more trades per day than larger time frames. If you want to trade on a 1-minute chart, build and test the strategy on a 1-minute chart.

1-Minute Chart Time FrameĪ 1-minute time frame may work well for someone who likes seeing detail in the price movements and potentially getting in and out for short-term trades that only last a few minutes. Prefer video, here is the video run-down on the Best Day Trading Chart Time Frame. We’ll discuss using multiple time frames a little later on.

Also, it is possible to combine time frames. But one may be more favorable to you because it provides more trading opportunities (potentially), or has a cleaner look. They all show 11 hours of price data on the same day, but there is a significant difference in detail. Read through each one, as it is a comparison to the others.īefore we begin, here is a chart that shows the difference between a 1, 5, and 15-minute chart. I’ll go through each one of these time frames, discuss their pros and cons, and what types of trading styles match up with each time frame. Pros and Cons of Various Day Trading Time FramesĬharts are typically broken down into several time frames, including 1 minute, 5-minute, 10-minute, 15-minute, and everything in between and beyond.

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