Articles

Simple tricks to trade the lower time frame

by Alfie Davies Financial Manager

Trading is one of the most complicated profession. Everyone wants to become a successful trader but only 5% of the traders can fulfill their dream. If you look at the pro traders in the United Kingdom, you will be surprised to see that every single one of them is making tons of money just by trading the live assets. They are even trading the lower time frame data and making a huge profit. But we all know that lower time frame trading is extremely risky and only a few traders can make a profit on lower time frame trading. So how do the expert traders at Saxo makes a consistent profit even after placing trades in the lower time frame? If you truly want an answer, you need to read this article very carefully. There are some simple tricks which you can follow to make a huge profit even in lower time frame trading.

Use of price action confirmation signal

If you truly want to trade the lower time frame data, instead of using indicators and other trading systems, you need to learn price action trading strategy. Price action trading is often considered as the easiest way to place quality trades in favor of the long-term market trend. Many retail traders in the online trading industry have changed their life based on the price action trading system. However, understanding all the basic formations of the Japanese candlestick pattern is not so easy. You have to face a hard time as a new price action traders. During your learning stage instead of using the real trading account, you need to use the demo account. Demo accounts are often considered as blessings for the new traders. It allows the new traders to master the art of trading without losing any real money.

Use of multiple time frame analysis

Do you know why lower time frame trading is discouraged in the options trading industry? This is only because of the high number of false trading signals. Some retail traders often use the advance indicators to filter out the false trading signals. But if you look at the professional traders in the United Kingdom, you will see that most of them are using the art of multiple time frame analysis to filter out the false trading signals. When you do the multiple time frame analysis make sure that you are dealing with the higher time frame data. Don’t do the market analysis only in the lower time frame. As a new trader, you also need to place your trade in favor of the long-term market trend. Trading against the market trend greatly increases your risk exposure and it drastically ruins your trading performance. So always try to trade with the long-term prevailing trend.

Precise knowledge of fundamental factors

Fundamental analysis is one of the key things which will help you to trade in favor of the long-term market trend. Most of the retail traders don’t put any sort emphasize on the fundamental factors of this market. But without having a clear knowledge in fundamental analysis section it will be almost impossible for you to make a profit on a regular basis. Some expert traders at Saxo often consider fundamental analysis as the key ingredient to find the high-quality trades. But when you start trading the market in the lower time frame, you need to understand the fundamental news data with extremely level of accuracy.

If you can follow this simple rules, you can easily master the art of lower time frame trading. Lower time frame trading is not so difficult. But most of the novice traders in the global industry makes things overly complicated by using too many variables. You need to keep your trading system extremely simple. Always remember, the complex trading strategy is not going to make you a rich person in the trading industry.

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About Alfie Davies Advanced   Financial Manager

45 connections, 0 recommendations, 125 honor points.
Joined APSense since, April 29th, 2015, From Monaco, France.

Created on Mar 23rd 2018 07:46. Viewed 420 times.

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