The lower time frame trading method has always been a challenging task for retail traders. People who trade the lower time frame are known as professional scalpers. They always take their trades with managed risk and they analyze tons of variables. Even after doing the data analysis properly, they often lose a big portion of their trading capital. So, if you truly believe trading is the lower time frame trading strategy is the best option for your career, you need to learn the proper way to deal with the losing trades. Unless you systematically do that, you are going to keep on losing money most of the time.
As a currency trader, you will always be facing some minor and major problems in the lower time frame. But if you take some smart steps, you should be able to deal with the losing trades in a very structured way. So, let’s learn some key techniques by which you can reduce the problems associated with lower time frame trading.
Trade the major pairs only
You should not be trading the cross or exotic pairs in the lower time frame. If you trade such pairs, you have to deal with big spreads and thus you won’t be able to secure decent profit in the market. So, to protect your trading capital, we strongly recommend that you learn to trade the major pairs from the starting of your career. The price movements are much stable and you can find reliable trade signals at the critical zone. On the contrary, if you chose to trade the cross pair, you will be analyzing the choppy market and thus you will rarely find good trade signals.
High leverage factors
People who deal with the lower time frame, need to be very selective with their brokers. It would be wise to trade with the elite broker Saxo capital markets as they offer a premium trading environment to their clients. If you want to make a living out of trading, we strongly recommend that you lower down the leverage factors and find the profitable trade signals in the market with a high level of precision. Once you become good at analyzing the leverage factors of the market, you will be able to take your trades in a standard way. Never expect that you can make a big profit in a lower time frame just because you have access to the high leverage trading accounts.
Using too many indicators
The novice traders often use too many indicators in the market and expect to make a big profit. But the use of too many indicators causes big trouble to the retail traders. If you want to enjoy hassle-free trade execution, we strongly recommend that you learn to deal with the most prominent indicators in the market. For instance, you can learn about the use of the moving average. Once you learn to use the moving average in the lower time frame, you won’t have to worry about the existing trend. Most importantly, you will feel much more confident as the indicator will act as an active filter.
Trade with rational goals
Being a professional scalper, you should be trading the market with rational goals. People who trade the market with an aggressive attitude and expect to make a big profit in the retail trading industry, tend to mess things up most of the time. To make a decent living out of trading, we strongly recommend that you learn to set your goals just like a professional trader. Based on your investment size, you should be expecting a return. And never expect that you will be making money from most of the trades. At times, you will have to endure frequent losing trades even after doing the proper data analysis. And if you can survive in such a situation, you can make a regular profit without having any hassle.