There is a common misconception among new traders, lower time frame trading is not profitable. This statement is not all true. Many institutional traders in the United Kingdom scalp the market and make a decent profit for their organizations. Trading strategy completely depends on the trader’s personality. Those who love to take the heat and make a decent profit within a short period of time are welcome to trade the lower time frame. On the contrary, those who believe in safe approach should become a position trader. However, lower time frame trading or scalping is extremely sensitive. You have to be very careful about your trade execution or else you won’t be able to make any real progress. Most importantly, you must have a very clear knowledge of trade management skills.
So how do we become a professional scalper? There is no exact answer is to this question. However, if you devote yourself and learn the three major part of the market analysis, slowly you will learn the proper way to analyze the lower time frame data. Being a day trader or scalper, your analytical skills shouldn’t be limited to lower time frame only. You should have the skills to analyze the weekly and daily time frame. In fact, without having the proper knowledge of multiple time frame analysis, it’s really hard to establish yourself as a successful trader.
Start trading the demo account
If you are determined to become a scalper, you should start with demo trading accounts. This is the perfect place to test new things and you won’t have to risk any real money. As a new trader, your main focus should be on the safety of your investment. If you are biased with the profit factors, you can never really learn from your mistakes. When you lose a trade, try to understand what went wrong with your strategy. If you can find the key reason for losing the trade, you can easily fix the issue and slowly develop your trading strategy. Binary options trading UK is a very sophisticated process and you can’t make money by trading the market with emotions. You should have rational logic behind each trade.
You can also look at options trading uk which is a great way for beginners to get on the market.
Scaling your lot size
Lot size calculation is very important for professional scalpers. Being a scalper you will have to trade with a big lot which eventually increases the risk to a great extent. To avoid huge risk exposure some people often scale down the lot size. Always remember, you are here to make money and the only way you can do so it by taking care of your investment. Stop taking unnecessary risk in low-quality trade setup. For the first few months, forget about making any real profit. Concentrate on your trading skills and try to fine-tune your strategy. Regardless of the condition of the market, never risk more than any amount which you can’t lose. Managing the cash flow and embracing the losing trades is the most difficult part in Forex trading profession.
Prioritize the higher time frame
Though you will be placing trades in the lower time frame yet you need to prioritize the higher time frame data. For instance, assess the condition of the market sentiment based on daily time frame. You should also assess the market trend based on a higher time frame data. Let’s give you an example of how this will help you to make money. Assume the daily trend is bullish in the GBP/USD pair. So, being a scalper you should be looking for buying opportunity in the lower time frame. If you look for selling opportunity, you will be placing trades against the long-term market trend. This will increase your risk to a great extent. For this very reason, the professional scalpers are very good in multiple time frame analysis. So, work hard and pay attention to every detail as a scalper.
This is a collaborative post.