Becoming an elite class trader in the online trading industry is not all easy. The rookie traders are losing money since they don’t have the proper knowledge to trade the dynamic price movement of the currency pairs. According to recent statistics, almost 90% of the retail investors are losing money. You might have millions of dollar but there is no assurance that you will make money in the online trading industry. There are two types of traders, actively trading the market. The aggressive traders always trade the low quality signals with big lot size. They want to secure their profit without doing the hard work. On the contrary, the conservative traders are always placing trades in the higher time frame and they keep their trades open for long period of time. Though lower time frame trading is very risky there are many professional Aussie traders leading their life based on lower time frame trading. Today we will give you four amazing advice, which will assist you to trade the smaller time frame with an extreme level of accuracy.
Learning price action trading method
When you deal with the smaller time frame signals, you have to know the fact that this is extremely risky. Most of the time the novice traders don’t have enough knowledge to decipher the market price movement. They simply use indicators to place trade, which is not all right. Indicators are nothing but helping tools. You can’t take any decision to place a trade based on the readings of such indicators. So how do you trade the lower time frame data? You need to learn price action strategy to place high-quality trades at any market conditions. Take some time and educate yourself with the proper knowledge of the price action trading system. If needed to demo trade the market to build confidence.
Learn to filter the false trade setups
The new participants in the CFD trading arena are losing money since they don’t know how to filter the false trading signals. They are always placing trades based on the trade setup in the lower time frame. But the professional traders always do the multiple time frame analysis so that they can easily filter the false trading signals. But when you do study different time frame you have to give priority to the daily time frame even though you will be trading the market as a scalper. Once you master the art of multiple time frame analysis you can easily spot the false trading signals.
Don’t trade the news
News trading is often considered as the riskiest step in the investment world. As a short time frame trader, you should never place any trade prior to the release of any high impact news. Always try to trade the market after the market has decided to movement in a certain direction. During the event of high impact news, lots of false spike and signals are printed on the chart. As a novice trader, it will be really hard for you to find the best trades. So try to stay on the sideline during the news so that you can limit your risk exposure.
Follow the simple rule of money management
As a currency trader, you will always have losing trades. So make sure you are not taking a huge risk in any trade. Money management is often considered as the Holy Grail in the trading industry. You need to limit your risk exposure in every possible way so that you are not losing a big sum of money. Always try to keep yourself secured to form the wild swings of the market. Without having a clear knowledge of trade management it will be almost impossible for you to deal with your loss. And being short time frame trader you must have the advance knowledge of risk management.