The only problem with very short time frames is that they are easier to manipulate. It is obviously easier to hunt stops on the 1 min chart than on the monthly charts, for instance.
Absolutely, but let's look at the advantages, smaller stops, higher frequency, potentially bigger rewards.
Right again. But here is the secret to making real money with smaller time frames, and it took me a lot of trials and errors to figure this thing out. When you buy/sell with short time frames and the market is now moving in your favor, switch to a higher time frame to follow the trend. For example if you use the 15 min charts to find a trading opportunity and you are winning, switch to the 1h chart and follow the trend there, otherwise you will never maximize your profits, because most of the time the trend will "end" prematurely on the 15 min chart but continue non stop on the 1h chart. In other words, use a higher time frame to exit your winning position.
Commission and slippage make the different. This make the different between the loser (day trader) and winner.
It might be helpful to consider the question from this perspective: - If it is easy to spot a strategy in a bigger timeframe that means that big money leaves much money on the table (people might enter with high leverage). - If a strategy can be found in a smaller timeframe big money only left small money on the table. How high is the probability that big money is habitually leaving big money on the table?
When my entry bar shows a low MAE and I really like where the move originated this transition has worked well for me. Just because you enter based primarily on a smaller time frame or tick chart there is no reason to manage the trade "small".