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Lower time frame trading is always risky. Many few traders can actually master this art. The professional traders in the financial market always suggest the new trader trade the higher time frame since it gives them high-quality trading signals and saves them from the false spike. But this doesn’t mean that if you trade the lower time frame you will not make money. There are some expert scalpers in the financial market who are making tons of money simply by using the lower time frame trading strategy. But in order to do so, you need to have something different in you. If you think that you can place your trade just like the higher time frame trading then you are completely wrong. To be honest you need to have advance knowledge about the financial market to master this art. In today’s article, we will give you three amazing tips which will help you to trade the lower time frame just like an expert.
Multiple time frame analysis Multiple time frame analysis is one of the best ways to find the best quality trade. The forex market is extremely volatile and when you trade the lower time frame you will have to face lots of false spikes. Most of the time the new traders loses their trade due to false spike or wild swing of the market. But if you can do the multiple time frame analysis then you can easily spot which is best trade signal and which one of false trade signal. At your initial stage everything will be very hard for you to determine but once you start learning slowly then you will understand the system. But remember that in order to do the perfect multiple time frame analysis you must have solid knowledge about the support and resistance level trading.
Using the 100 simple moving average Indicators are one of the best tools that the traders can have in their trading career. But most of the traders use it in a wrong way and lose a huge amount of money. But the expert traders in the
options trading industry uses the 100-day moving average indicator in very efficient way. The 100-day moving average gives the traders a precise entry point. Most of the time the market respects the 100 SMA and it is often referred as dynamic support and resistance level of the market. The professional scalper’s sets pending orders at these level and make a decent profit. However, if you know the art of price action trading then you can easily use this to execute high-quality trading signals with an extreme level of precision.
Take 1 percent risk in each trade When you trade the lower time frame you need to take only 1 percent risk. Trading is all about risk management. The professional traders know very well that they will often have to deal with consecutive loss so they always play safely in this sector. When you are trading the smaller time frame you are actually placing your trading in an extremely volatile market condition. Since no one in this world is certain about the trade out so you should limit your risk as much as you can. It’s true that if you trade with a big lot then you might get some big winners in lower time frame trading but in the long run, you might blow your entire trading account. In this market, only the low-risk takes can survive.
Thank you for your amazing tips. Trading in lower timeframes require more expertise. In lower timeframes market is more volatile. New traders should trade on higher timeframe. Once you are accustomed to higher timeframe, you can come to lower timeframe. I am trading with FXPM where I am happy with the services I get.
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