IRSHADQUR, there is a lot to consider, depending on your model. The time step size and the resolution of modes in the model is loosely related to the nyquist frequency of the data, in that you can only resolve models of half the nyquist (which is related to the sampling rate of the data). Your timestep (dt) seems very small, but you don't state if this is the initial or the min dt you're using in line with automatic incremeentation.
Firstly, do a modal analysis and establish the main mode/s of interest for you in your model. Knowing this information, you will need to then try and resolve the frequencies you are interested in by setting the time step.
As a rule of thumb (and no more), use the following:
If your model is linear and you wish to resolve the frequency (f) of the highest mode of interest in the model, use max dt = 1/(5f)
If your model is non-linear (ie contact, plasticity, large strain), consider max dt = 1/(20f)
Obviously the higher frequencies are more difficult to resolve in that these require a smaller time step.
The 1 and 5 in the equations above attempt to resolve a sinusoidal wave by suggesting that for linear models this can be resolved by using 5 points for the (sine) wave cycle. Similarly, 20 points for models involving contact and large non-linearities. It's fine to use automatic incrementation as long as you put the correct controls in place for this ie you limit the dt to ensure you capture your main response frequency as I've described.
Unfortunately, you also need quite a lot of experience to make sure your model is behaving correctly, which takes time. The above is only a short summary of what needs to be considered, but hope this helps.
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