Trading the lower time frame is extremely risky yet most of the novice traders to tend to trade the lower time frame. In lower time frame trading you will get lots of trading signals but you will have to filter the best possible trading signals. For this very reason, the expert traders at Singapore often suggest the new traders trade the higher time frame data only.In higher time frame trading you don’t have to worry about the false spike since most of the time the quality of the trading signals is extremely good. But even after knowing the risk factor, if you still wish to trade in the lower time frame, this article will give you a precise guideline. But before you start trading the market in lower time frame, make sure you have precise knowledge about the trading industry.
Use the price action confirmation signal
When you are dealing with the lower time frame data you need to understand the fact that indicators will only harm you. Indicators are basically two types, leading and lagging indicators. The leading indicators will always give you early trading signals and the lagging indicators will give you late trading signals. You need to learn price action trading system since it will help you to place a trade in favor of the market. Since this system is based on Japanese candlestick pattern it will be extremely easy for you to deal with all the dynamic movement of the market. Most importantly it will help you to find quality trading signals in favor of the long-term trend. Being new traders learning the art of price action trading system is extremely challenging but if you devote yourself, it won’t take more than 3 months to learn all the reliable candlestick patterns.
Do the multiple time frame analysis
Do you know how the professional traders in the options trading industry are making tons of money? They always do multiple time frame analysis since it is one of the easiest ways to filter the false trading signals. Being new to this market, learning the art of multiple time frame analysis will be extremely challenging but if you focus on the longer time frame data you will be able to get a clear idea how multiple time frame analysis should be done. Once you master the art of doing multiple time frame analysis, you will understand how easy it is to place a trade in in the lower time frame. But you should get excited just by seeing few winning trades using this technique. No matter what you do, you will always have to embrace some losing trades in this market. You need to trade this market with managed risk all the time or else you might even blow your entire trading account.
Learn the fundamental factors
Fundamental analysis is very crucial to your trading success. If you look at the professional traders at Singapore you will understand how well they assess the fundamental factors of the market. Without assessing the fundamental factors it will be nearly impossible for you to deal with your trading loss. It’s true that learning the art of fundamental analysis is really hard but if you focus on the higher time frame data, everything will become extremely easy for you. And when you start dealing with the lower time frame data, you need to ask yourself whether you can truly control our emotions. If you get emotional by seeing the wild market volatility you won’t be able to make a profit. If possible stay on the sideline prior to the high impact news release.
The life of the professional trader is always very challenging. They are taking a huge risk and making a consistent profit by the virtue of their trading knowledge. If you decide to become a scalper in the market, make sure that you have precise knowledge of risk management.