There are two types of traders in the Forex market. The first one is the aggressive trader and who prefers to trade the lower time frame. In short, aggressive traders are often known as scalpers who prefer to use a short term trading method. The second type of traders relies on the position trading method. They prefer to trade the market with low risk and they risk the trend for days. Both of these systems are profitable but learning to trade the lower time frame is very hard. In other words, mastering the technique of short term strategy is a very complex method.
The experienced Aussie traders often suggest the naïve traders trade the daily time frame. But this is extremely boring. Some of the naïve traders dream to become a professional scalper from the starting of their trading career. Let’s learn some amazing techniques which will help us to become professional scalpers.
Learn about Japanese candlestick
To master the short term trading method, you must learn about the Japanese candlestick pattern trading strategy. The new traders are losing money most of the time since they rely on indicators reading. Being a short time frame trader, you must learn to trade the raw price data. Unless you focus on real-time market dynamics, it will be very hard for you to make a profit from this market. Learning to trade the market with the help of the candlestick pattern is not that hard. Open a demo account with Saxo and start trading the key support and resistance level based on candlestick patterns. Within a few months, you will understand the proper way to trade the lower time frame.
Stop trading the high impact news
To make a consistent profit in the CFD market, you must not execute any trade before high impact news. Those who are relatively new to the trading profession love to trade the major news since they think this is the best way to make a profit. But during a major news release, the market becomes extremely volatile and the price tends to hunt the stops loss. Unless you have extensive experience in news trading, you should never scalp the market in the event of the major news release. It’s better to stay in the sidelines rather than losing money on low-quality trades. Try to trade a stable market since it reduces risk exposure.
Use the chart pattern trading technique
A chart pattern trading technique is extremely effective when you trade the lower time frame. Most novice traders fail to predict the price movement since they always rely on indicator readings. Once you learn the proper way to trade the chart pattern, you will find many trade setups in the lower time frame. Though achart pattern trading strategy is a very effective technique to make a profit still you need to consider the worst-case scenario. Stop thinking about big risk strategy since you never know which trade will hit the potential stop loss or take profit.
Trail the stops
If you intend to trade the lower time frame, you need to learn the use of trailing stop loss. By using this simple feature, you can ride the market trend with a high level of accuracy. Being a scalper, you should also find a reputed broker. Unless you trade the market with a well-reputed broker, you are going to face many technical issues. Most importantly, you will not gain any advantage while using the trailing stop loss. Before you start using the trailing stops, learn about the key support and resistance level. Use this knowledge to find the potential stops for each trade. And always try to limit the risk exposure while trading the volatile market. Never forget the fact, trading is all about risk management. So, take smart and calculated steps or you are going to lose money like the majority of traders.