How to trade the lower time frame like a pro trader
Everyone thinks trading the lower time frame like a pro trader is a very big challenge. To a certain extent, this statement is true. However, if you follow some cardinal rules and trade the market with strong confidence, you should be able to become a professional scalper within a short time. Learning to deal with the lower time frame is not a tough task as long as you trade the market with discipline and maintain strategic steps.
Now we are going to give you some powerful advice that will allow you to trade the lower time frame. However, you should always remember the fact, lower time frame trading is extremely risk and a small mistake can cost your trading capital.
Select the major pairs
You should not be trading the cross pairs while trading the lower time frame. The price movements are not that stable and the trends often get changed in the cross pairs. That’s why most of professional traders prefer to trade the major currency pairs in the lower time frame. Though it is hard to find reliable trade signals in the lower time frame, choosing the major currency pairs, you will make the overall trading process easier.
Study the candlestick patterns
To become a professional scalper, you should study candlestick patterns. By learning about the price action confirmation signals, you should be able to take the trades with strong confidence. Some people often think learning about the price action trading strategy is waste of time. To be honest, they don’t have any knowledge about the market. Unless you learn to analyze the major candlestick patterns like a professional trader, you will never know the proper way to take the trades.
Trade with the top brokers
Being a lower time frame trader, you need to optimize your trading cost. Visit https://www.home.saxo/en-sg/products/listed-options and learn more about the associated cost of trading at Saxo. By choosing a good broker like Saxo, you can eliminate unnecessary costs and make things easier. Some people often say the high-end broker’s charges heavy fees but this is not all true. In reality, the cost of trading with the high-end brokers is lower than that of the average class broker. Moreover, the high-end brokers will give you access to the fast-paced trading environment where you can do the data analysis with a high level of precision. So, never trade the market with the low-end brokers.
Avoid trading the news
Being a short time frame trader, you should not trade during news hours. If you think you can become a rich trader by trading during the news, you are making a big mistake. To ensure the safety of your trading capital, you must learn to find the stable hours of the market. Once you systematically do that, you will become much more confident. If possible learn to analyze the major news and blend it with your technical analysis. By doing so, you will find much reliable trade signals in the market.
Use trade filter tools
In the lower time frame, you have to deal with many false trade signals. To eliminate the false trade setups in the market, you need to use the trade filter tools. Without effectively using the trade filter tools, you will never learn to become a professional trader within a short time. Follow the safety protocol and try to take your trades in a better way. Once you become good at using the indicators, you will become much better at trading the lower time frame. But do not trade the market by breaking the rules of the risk market. No matter how good you are at trading, you should not be risking more than a 2% account balance. If you do so, you will keep on losing money.