How to trade the lower time frame with a high level of accuracy

Lower time frame trading is one of the most difficult tasks in the trading industry. Many retail traders have blown their account just by trying to trade the market in the lower time frame. Even though lower time frame trading is extremely risky but the professional traders always consider it as a money-making opportunity. There are some certain rules which you can follow to become a successful short time frame trader. In today’s article, you will learn how to trade the lower time frame data with high level of accuracy.

Learn multiple time frame analysis

Do you know the proper way to filter the false trade setup? If you are using the indicators you are not walking in the perfect path. You need to study the different time frame to filter out the best trades. Some of you might get confused while using the multiple time frame analysis but this is really very simple. You need to give priority to the higher time frame analysis. But even after doing all the things perfectly you might lose trades. For this very reason, you should never risk more than 2% of your account balance in any trade.

Use the candlestick pattern

The use Japanese candlestick pattern is one of the easiest ways to find the best trades in the market. The new traders often say they don’t have to learn price action trading to become a profitable trader. It’s true you can use other trading styles to trade the market but if you focus on the lower time frame you must trade after doing the perfect price action analysis. It will help you to execute the trade at a very precise point. When it comes to lower time frame trading strategy the timing is very crucial. A few second delays can cost you a huge amount of money.

Focus on the fundamental news

The short time frame trader should have a very clear knowledge of the fundamental sections. If they trade this market by using the technical data only, they will always have to lose. Just have a look at the professional traders in the option options trading industry. You will be surprised to see how well they trade the news. But prior to participating in the news trading industry, you must learn to trade by using a demo accounts. The demo environment will give you the perfect platform to learn from your mistakes. Things are really very easy when it comes to the retail trading industry. But you must know the proper way to manage your risk.

Get rid of your emotions

Emotions are the most dangerous enemy of the professional traders. If you trade the market and face consecutive losing trades there is nothing to worry. As long as you stick to the market you will be safe. Some of you might think it’s not possible to get rid of human emotions but if you do some hard work, everything will become easy for you. Nothing is impossible for a human. Just follow the rational logic and you will never have to worry about losing trades. This is nothing but a strategic business and you can definitely win trades by following the rules of investment.

Never risk more than 1%

This is the most important thing you need to learn as a currency trader. Those who risk more than 3% of your account balance should never trade the lower time frame. You have to understand lower time frame trading is one of the most complex tasks in the world. You can’t afford to make mistake here. You need to take the calculative risk to ensure the decent growth of your account. However, you can also risk 2% but be sure you are absolutely convinced by the trade setups.