Online Stock Trading- Deciding Your Time Frame.

In Online Stock Trading, before you start doing your analysis you need to know how much time you intend to spend trading. Do you want to spend 1 hour a day? 1 hour a week? 1 hour a month? 1 hour a year? or maybe trading full time?

Spending more time trading does not necessarily mean bigger profits. Spending 30 minutes every couple of days on your investing can often generate bigger returns than spending 8 hours a day trading! The reason i decided to touch this area is because once you know how much time you want to spend investing you will know what type of Stock chart to look at for doing your analysis. Below are a few guidelines:

If you intend to spend several hours a day in your online stock trading, and expect to hold your share for a time period ranging between 1 to 7 days you are better off looking at a stock chart with 1 to 3 months worth of data (If day trading then use smaller time frame).

Trading 30 minutes every few days and expect to hold share for a few days up to several weeks, you should be looking at a stock chart with about 6 months worth of data.

Trading 1 hour a week and expect to hold share for a few weeks up to a few months, you should in this case be looking at a stock chart with 6 to 12 months worth of data.

If you then intend to spend 1 hour every month on your online stock trading and expect to hold share for several months up to 1 year and above you are strongly advised to look at a stock chart with 12 months to several years worth of data.

Whether trading Stocks - Futures - Forex, it is important to understand work out the appropriate time frame you intend to trade as looking at the wrong data collection will cause you a lot of fake outs.