Everyone wants to become good at the options trading profession. Thousands of traders are joining the retail trading industry as they know it can help them to secure their financial freedom. Securing financial freedom as a full-time options trader is a very tough task. Unless you know the perfect way to take the trades, you will never learn to secure consistent profit in the market. In fact, you will blow up the trading account within a short time.
You might be thinking that becoming a professional trader is a very tough task. The statement is true to a certain extent but you can always ease the learning process by following professional guidelines. In this article, we will share some amazing ideas which will allow you to trade a lower time frame like a pro trader. Let’s get into the details.
Table of Contents
Trade the major pairs only
Being a short time frame trader, you should be focusing on the major pairs only. If you intend to take the trades on the cross or exotic pairs, you will have a very tough time identifying the potential trading zone. Even if you take a professional course to become good at scalping, they will suggest you trade only in the major pairs. Analyzing the price movement in the major currency pairs is relatively easy and it provides decent trading opportunities to the retail traders. You might be thinking that you know a lot and you are ready to trade the cross pairs. If you do so, you are most likely to lose most of the trades.
Learn multiple time frame analysis
To become good at lower time frame analysis, you must learn multiple time frame analyses. Get more info about multiple time frame analysis and be prepared to enhance your skills. Though the learning stage will be hard, you can easily overcome the major obstacles with the help of a demo account. There is no reason to risk your real money in the learning stage when you will have the opportunity to learn new things in a risk-free environment.
While analyzing the different time frame data, focus on the higher time frame. Consider the higher time frame trade signals as a trade filter tool. The signals generated in the lower time frame must match with the signals generated in the higher time frame. Unless you have matching signals in different time frames, you should not take any trades.
Learn to use the Fibonacci retracement tools
Professional traders always use the Fibonacci retracement tools while trading the lower time frame. They consider the Fibonacci retracement tools as one of the key elements to find the best possible trade signals. If you manage to draw the retracement levels with a high level of accuracy, chances are very high that you will find the endpoint of the market retracement. If possible learn to use the price action confirmation signal. By using the price action confirmation signals to trade the Fibonacci retracement levels, you can improve your confidence level to a great extent and make a big profit without having major trouble.
Use of indicators
Being a lower time frame trader, you should have extensive skills in using the indicators. Without having strong knowledge to use the indicators, you will never learn to find the best possible trade signals. Focus on the basic functionalities of the indicator and get used to it. If required, trade the market in the demo account and see how the indicator readings affect your trading decision. Once you feel confident with a few indicators, you may consider these tools as your trade filtering asset. However, you should never overload the chart with too many tools. The lower time frame trading strategy must be simple or else you will struggle hard most of the time. Focus on simple logic and take your trades in a strategic way so that you can earn more money with a great level of ease.