Lower time frame trading is a very risky business. Many ETF traders have lost their trading account by trying to scalp the market. But some of the experienced traders are making tons of money by using the lower time frame trade signals. In fact, they are leading their life in a very relaxed way. You may expect that they are using the most complex trading method in the world but if you check their trade execution process, you will realize simplicity is the key to success at trading.
You can read about thousands of tips to become good at the ETF trading profession. But by doing so, you will never learn things by heart. Instead, it would be wise if you start learning about the important details of the market. In this context, we are going to give you five golden tips which will change your life within a short time.
1. Trade with logic
You should not be trading the market with aggression. The rookies trade the market with emotions and they expect to make a big profit without doing the proper data analysis. But by doing so, they impose a great threat to their business. If your primary goal is to master the art of trading, we strongly recommended that you spend more time in develop a professional trading strategy. Follow the rules of that system so that you can take the trades with valid logic.
2. Stick to the market trend
While trading the lower time frame, you may think the overall trend has no impact on your results. But if you think in such a way, you are making a big mistake. You need to find the direction of the trend in the higher time frame and then take the trades in that direction. Use this link and learn more about the importance of trend trading strategies in the stock market. Once you start favoring the long-term trend in the market, you will slowly gain much more confidence with your actions. Thus making consistent profit in the retail trading industry is going to be easier.
3. Avoid the news hours
As a short time frame trader, you should avoid the news hours at any cost. Usually, the price movements are a bit choppy in the lower time frame. And if you trade during the news hours in the lower time frame, there is no way you are going to get the perfect signals. So to ease the overall process of trading, you should find the most stable hours and execute the trades with a high level of precision. Once you become good at this, you will be able to make a big profit without having much trouble.
4. Trade with confidence
You should never lose confidence while trading the lower time frame. If you lose confidence while trading the lower time frame, you will become frustrated with your actions. You will keep on making silly mistakes in the trading profession and thus blow up the trading account within a short time. Never think you know every bit of detail about this market. If you think in this way, you are always going to lose money. Keep on learning more about this market and you will definitely become good at the trading profession.
5. Trade the major pairs only
Being a short time frame trader, you should avoid the cross, exotic and minor currency pairs. Look for the trade signals in the major assets. As the price movements in the major currency pairs are much more stable, you will feel much more confident with your actions. Thus taking the trades in the lower time frame will become easier. But remember, no matter which trading method you use, you will have to lose some trades. Be prepared to accept the losing trades in a strategic way and you will be able to reduce the stress in your trading profession.