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Four effective rules to trade the lower time frame

by Chris G. Work in Internet Business industry

Lower time frame trading is often considered to be a task for professional traders. Without having enough experience you can’t expect to make a profit by trading the lower time frame data. Those who are trading the Forex market for a long time knows the importance of time frame selection. You can follow the conservative trading technique by trading the market in the daily time frame or you can follow the path of the aggressive trading system. Though the pro-UK traders always suggest the novice traders to learn to trade in the higher time frame, many have mastered the art of scalping in less than a year. You need to follow some specific rules to become a professional scalper. Let’s explore four effective rules which can help you to make more money in lower time frame trading.

Precise knowledge of technical analysis

Without having a precise knowledge in the technical analysis section, you can’t become a successful trader. Success is very hard when it comes to Forex trading profession. The majority of the retail traders become emotional and trade the market with aggression. This is where you need to gain control over your emotions. The novice traders often find it hard to control their emotions since they don’t know the proper way to analyze the technical variables. Before you execute any trade in the lower time frame, find the overall trend of the market. Never place your bet against the market trend since it will significantly increase the risk factors. Trading is all about finding the perfect balance. To find the best possible trades you must trade the lower time frame with an extreme level of caution.

Find a high-end broker

To become a successful scalper, you must trade the market with Saxo options trading account. Saxo is often considered as the best broker in the world since they always care about their clients. You can easily get free access to their robust trading platform and analyze the market data by using their advanced tools. On the other hand if you trade the market with a low-end broker, chances are very high you will not get access to a premium trading environment. Choose your broker very carefully or else you will have a tough time trading. Though the high-end broker might have strict requirements it's for your own good.

Analyze the fundamental news

Being a scalper, you must have extensive knowledge of fundamental analysis. The conservative traders can easily make a profit based on technical data but when it comes to lower time frame trading strategy, you must keep yourself updated with the latest news. Most of the time the market exhibits extreme movement on the event of the high impact news release. So, if you trade the high impact news, the chances are high that you will lose the trade. Learning to analyze the high impact news is not all hard. You have to rely on the major news and analyze the possible outcomes for certain data. Google the term fundamental analysis, and you will get many valuable resources.

Develop your risk management plan

The risk management plan is the most important thing when it comes to scalping. Being a scalper, you have advance trade management skills or else it won’t take much time to lose a big portion of your investment. Making a profit in the Forex market is not so easy. But if you focus on simple logic and trade the market with discipline, you will never have to stay in the losing sides. Take advantage of a demo account and see how you perform in the lower time frame. No matter how good the trade setup is, you should never risk more than 1% of your account balance. Trade with managed risk so that you don’t have to face extreme pressure to recover losses.


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About Chris G. Advanced   Work in Internet Business industry

46 connections, 0 recommendations, 134 honor points.
Joined APSense since, October 1st, 2013, From Toronto, Canada.

Created on Aug 28th 2019 08:28. Viewed 353 times.

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