Becoming a successful trader in the online trading industry is very challenging. Everyone wants to become a profitable trader but only 5% of them can do this. Most of the retail traders don’t know the fact that without having precise knowledge about the trading industry, it’s almost impossible for them to make money. They simply start to trade based on their gut feelings and loses a significant portion of their account equity. Some retail traders often lose money due to lower time frame trading. Lower time frame trading can extremely risky at times. If you look at the lower time frame trading chart, you will be surprised to see lots of false trading signals are present in that chart. But there is nothing to worry. If you follow some basic rules you can easily make a consistent profit even during the high level of market volatility.
Multiple time frame analysis
Multiple time frame analysis is one of the best ways to trade the lower time frame data in the financial industry. We all know that market often exhibits false spikes and trading signals. But do you know how to filter the best possible trading signals in the lower time frame data? The answer is simple. You have to learn the art of multiple time frame analysis. The moment you start trading the lower time frame data is the very moment you start taking excessive risk. Instead of using the indicators in the trading platform you need to analyze different time frame. Indicators will never give you precise trading signals. They will either give you early trading signal or late. The only way you can trade the real dynamics of the market is by using the lower time frame data.
Price action confirmation signal
The price action trading system is one of the easiest ways to find profitable trades in the global market. If you look at the professional traders, you will see that most of them are using the reliable price action confirmation signal to place their trade at the key support and resistance level. Even the pro traders in the options trading industry use the same principle to place their trade. So if you truly believe that you need to become a scalper in the financial market, it’s highly imperative that you learn the different price action confirmation signal.
Avoid trading the news
Most of the retail traders tend to trade the high impact news data. They simply wait for confirmation signal in the lower time frame and loses a significant portion of their trading capital. The moment you start trading the live asset is the very moment you start taking the risk. So instead of placing trades prior to the news data, you need to wait for the market dust to settle. If you place a trade without analyzing the fundamental factors you are not doing things in the right orders. You are actually trading the market based on technical analysis and gut feelings. But there is no place of emotions in the financial industry. You can’t make any real progress unless you truly know how to place perfect trades in the global market.
Risk management factors
If someone asks you about Holy Grail in Forex what will be your answer? Most probably you will say that there is no holy grail in the Forex market. But if you ask the professional trader the same question, you will be surprised to hear that every single one of them will tell you about a specific sector in this market. This is money management. In the eyes of the professional trader perfect money management is often considered as the Holy Grail in the Forex market. If you can place a trade with the managed risk you will never have to blow your entire trading account. So try to trade with low-risk exposure even though are trading the lower time frame data.
Date Of Update: 11 June 2020, 06:37
