June 14, 2024

Business Bib

Business & Finance Blog

How to trade the short time frame like the expert trader 

3 min read

Trading the financial instrument is very much popular nowadays. Most of the novice traders in the online trading world jumps into forex market since they consider it as the smartest way to make money. Indeed it’s true that it’s the best way to make a decent profit in the world of the economic crisis but in order to make money consistently, you must have a very clear understanding of the forex market. If you look at the statistics then you will understand that most of the traders are failing to make money in the online trading world. However, the professional traders at Australia are very much keen at executing the perfect orders in the market. Most of them trade with the reputed brokers like Saxo since they offer an excellent trading environment to their traders. In this article, we will discuss how to trade the short time frame like the expert trader.

Do the fundamental analysis

Fundamental analysis is often considered to be the most powerful type of analysis in the forex market. Most of the novice traders ignore the fundamental analysis and execute their trades based on technical analysis only. But as a professional trader you should always look at the fundamental factors of the forex market or else you will never be able to execute high-quality trades. It’s true that mastering the art of fundamental analysis is a little bit difficult but if you trade with patience and read lots of articles then within a few months you can master the basic concept of the fundamental analysis. Once you develop the skill to assess the market fundamentally you can easily execute a trade in favor of the long-term trend in the short time frame.

Use price action confirmation signal

Price action trading strategy is one of the most popular trading strategies in the forex market. Most of the professional traders execute their trades in the market by using the price action confirmation signal. It’s true that this system tends to generate the best possible result in the higher time frame but if you are clever then you can also use it in the short time frame. The professional traders in the options trading industry simply trade the key support and resistance level in the market in the shorter time frame and make a decent profit in every single day. Though the system is extremely reliable you should never trade the reversal in the market. Always try to trade in favor of the long-term trend to reduce the risk exposure in trading.

Use perfect risk management factors

Trading is all about probability and you need to be extremely careful when you execute the orders. A single mistake can wipe out your entire trading account. Most of the novice traders execute high lot size trade in the market and thus lose a huge amount of money in the forex market. But no can predict the market movement 100 percent accurately and for this very reason, the professional traders use risk management factors. When you trade the market make sure that you are not risking more than 2 percent of account capital on any single trade. If you face consecutive losing orders then don’t get frustrated rather wait for the next trading opportunity. However, when you trade the smaller time frame you need to be a little bit smart and follow risk management factors in different ways. Always make sure that you are not losing more than 2 percent of your trading capital in a single day rather than a single trade. And if you follow this simple rule you can easily become an expert short time frame trader.

Summary: Trading the short time frame is one of the most complicated tasks in the forex market. If you look at the professional trader then you will notice that every single one of them follow the above-mentioned tips in this article. If you are relatively new make sure that you learn the market basics by using a demo trading account and once you fill confident trade with real money.