Lower time frame trading is extremely risky but this doesn’t mean no one is making money in lower time frame trading. Many successful traders in the United Kingdom have mastered lower time frame trading and making tons of money. But before you consider to become a scalper in the retail trading industry you have to know the demerits of lower time frame trading. First of all, you will have to deal with the extremely volatile market which will make it really hard for you to find profitable trades. Even if you do, chances are very high you will lose money. Scalping is one of the hardest things in the retail trading industry. Due to this fact, the pro-UK traders always suggest the new traders become a long-term trader. However, if you still want to learn lower time frame trading this article will give you a clear guideline.
Stop using the indicators
You can’t make any real progress in lower time frame trading if the focus on the indicators reading. You always have to trade the market by using the key support and resistance level. Support and resistance are one of the most elements in currency trading. In fact, without having any strong knowledge of the support and resistance level, no one can become a successful trader. Indicators can help you only to find the quality trades. But it will never give you the exact entry point of the market. But if you see your trading chart, you will be surprised to see how support and resistance level provide unique trade setups to the retail traders. You might have bought expensive indicators from the internet but this will not help you to make money. If it was so, no one in this world would have lost money in Forex. You have to use your human intelligence to become a successful trader.
Take your trading decision based on logic
It’s very normal to get emotional in lower time frame trading. But if you want to shine the like the professional traders in the forex trading community, you need to take a decision, based on logic. Stop playing with emotions as it will never help you to become a profitable trader. In fact, emotions are often considered as the number of the enemy of the Forex trader. But controlling your emotions as a new trader will be a very difficult task. You have to gain strong knowledge on this profession to understand price movement of the currency pair. You need to have a high level of confidence to change your life based on this profession. Just by following the rational logic you can dramatically change your trading performance. Stop following your emotions and work hard to develop a simple trading system. Since you will be trading the lower time frame focus on the simple trading decision so that you can take quick steps at any market conditions.
Bring variations to your lot size
Bringing variations to your lot size is very crucial in short time frame trading. If you blindly follow the 2% rule of risk management you are going to become the biggest losers in lower time frame trading. Depending on the quality of your trade setups you need to increase your lot size. But under no circumstances, your overall risk should exceed 3-5% of your account balance. Learning this technique is very hard but if you demo trade the market for the first few month things will become extremely easy for you. At times you might not understand why you are always losing money. But this has nothing to do with your trading system. Due to your poor risk-reward ratio, you are losing money in the retail trading industry. Even if you trade with 1:3 risk reward ratio, you can easily make money while losing 50% of the time.Think smart to become successful in lower time frame trading.