Trading the lower time frame is one of the most complicated tasks. We all know lower time frame trading strategy is one of the key reasons why naïve traders are losing money. Since the market exhibit too many false trading signals, it becomes nearly impossible to find great trades in the lower time frame. However, the experienced Singaporean traders can trade the market with a lower time frame by maintaining precision. So, how do they do that? They have years of experience and they know the ins and outs of the trading business. As a new trader, you should never expect to trade the market like a pro trader. You need to gain experience before you start making some big changes in your career.
Today, we are not going to give some bulletproof lower time frame trading strategy. We are going to high light the top four common mistakes the naïve traders commit while trading the lower time frame.
Trading against the trend
If you trade with the major trend, you will have a high success rate. Sadly, the new traders are always trying to trade the major reversal since they consider it one of the most efficient ways to make big profits from this market. If you want to survive at trading, you should never try to trade against the major trend. To earn consistent profit from this market, you need to learn a trend trading strategy. Trading with the major trend is one of the easiest ways to earn more money. Even if you trade in the lower time frame, you should never trade the retracement. Retracement trading is a very big mistake and it should never be a part of your scalping strategy.
Trading with emotions
The elite traders at Saxo never trade with emotions. They always rely on a professional approach to trading. If you want to succeed at trading, you must learn to control your greed and emotions. Being a naïve trader it’s really hard to push yourself to the limit since you won’t have the necessary skills to deal with the market dynamics. At the initial stage, you should learn to control your emotions at any cost. By controlling your emotions, you will be able to find high-quality trades with a high level of accuracy.
Trading with big volume
If you trade the market in the lower time frame, you need to reduce the risk of trading. Trading with big volume is a very risky approach. The professional scalpers always follow strict risk management rules as it allows them to make a big profit without losing too much money. Things might be hard at the initial stage but if you look at the bigger picture of the market, you will realize the importance of a safe approach at trading. Forget the fact that trading is more about taking too much risk and executing more trades. Be on the safe side when you trade the lower time frame. Use the simple candlestick pattern so that you can trade the key support and resistance level with a high level of accuracy.
Stop overtrading the market
You need to stop overtrading the market when you start dealing with the lower time frame. Overtrading is one of the key reasons for which naive traders are losing too much money. The elite traders are using quality trade execution even though are trading the lower time frame. The number of trades that you will execute per day has nothing to do with your profit factor. Think about the safety of your investment and trade this market with proper discipline. Forget about the aggressive steps and trade the market with proper discipline.
The Forex traders often forget that surviving is the most difficult task in the trading business. If you intend to earn more money, focus on the safe approach. Play it safe to earn more money without being exposed to high risk.