Amazing tips to trade the lower time frame

  • Lower time frame trading is one of the hardest tasks in Forex market. If you look at the experienced traders in the retail trading community, you will be surprised to notice, only a few traders trade the lower time frame. Most experienced Singaporean traders suggest the novice traders not to scalp the market as it increases the risk exposure. However, if you still want to become a professional scalper and trade the lower time frame with an extreme level of accuracy, this article is the perfect solution for you. After reading this article you will have a clear idea to trade the lower time frame.

     

    Reduce the risk exposure

    If you are determined to become a scalper, you must reduce the risk factors. Since you will be trading frequently during the day, it’s highly imperative you limit your risk factors in every possible way. Though you will be targeting small market movements this doesn’t mean you will be trading with a big lot. Being a new trader, you must not trade the market with more than 1% risk. It might sound a little bit crazy but if you follow this rule blindly only then you will be able to save your investment. Losing 1% of your account balance is affordable but when you lose more than 5% in a single trade, things will become extremely complicated.

     

    Trade the key levels only

    Those who are new to the trading industry might think minor support and resistance level trading is the best way to find more trades. But if you trade the minor levels, chances are very high, you will be losing most of the trades. Even though you will be day trading or scalping the market but its highly imperative you trade the daily time frame. Try to find the key support and resistance level in the daily time frame and trade the market with managed risk. It’s true this will significantly reduce the number of your trade execution but at the end of the day, it will dramatically increase your profit factors.

     

    Be prepared to embrace losing trades

    As a short time frame trader, you have a lot to learn from the senior traders in the options trading industry. They always trade the market with manage risk and they are always ready to embrace losing trades. Even if you do technical and fundamental analysis with a high level of accuracy, it’s very obvious you will not be able to win all trades. The market is designed in such way so that no one can predict the price movement with 100 % accuracy. Due to this dynamic nature of the market, this market is free from manipulation. Learn to embrace the losing trades and you will see positive change in your trading career.

     

    Learn multiple time frame analysis

    Do you know the best way to filter the false trading signals? Multiple time frame analysis is one of the best to find the false trading signals. Some of you might get confused with different time frame data, but there is a simple solution to this problem. You have to give priority to the higher time frame data. Most of the time the market tends to respect to the higher time frame trade signals. Even though you will be trading the market as a scalper but make sure you give priority to higher time frame trade setup.

     

    If you can follow these simple rules, becoming a scalper will not a difficult task for you. During the starting of your trading career, you should never trade the market with real money. First of all, try to understand the nature of the market by using the demo trading environment. Once you feel confident, switch back to the live account and trade with low risk.