(Newswire.net — March 10, 2020) — Short term trading strategies are mostly designed for skilled traders. Sadly, beginners in the Singaporean trading industry start dealing with the minor details of the market with great hope that they can become a professional scalper. But becoming a professional scalper is a very challenging task and it requires precise knowledge of technical and fundamental analysis. So, how can naïve traders make a decent profit without risking too much money? Go through this article carefully because we will give you some amazing tips that can help you to master short term trading strategies.
Improve your execution process
Being a short time frame trader, the importance of price action trading is enormous. With the help of the price action confirmation signals, it’s really easy to improve your win rate. The reliable candlesticks are most used to find the exact entry and stop loss for the trades. You don’t have to rely on the wide stop loss when you start dealing with such a process. However, getting yourself prepared to deal with the price action confirmation signals is a very challenging task. But with the help of a virtual trading account, you can easily do so. Once you master this technique, you can improve your trade execution process even in the lower time frame.
Trade with the trend
Rookies are always interested to trade against the trend. They try to trade the major reversal with great hope to earn more money. But trading the major reversal is more like pushing yourself to the extreme limit. Without having strong skills, you should never try to against the major trend, especially in the lower time frame. If you read blogs on Forex trading for beginners, you will find the proverb, “Trend is your friend”. So, to stay on the safe side, forget about the time frame and with the major trend.
Avoid trading the news
You must avoid trading the major news to become a successful trader. If you analyze the lower period, you will notice too many false spikes during the major news release. This is nothing but a reflection of the price movement due to the uncertainty in the event of major news. Being a short time frame trader, try to learn about the news trading method. Avoid placing any trade on such major news since you can lose a decent portion of your trading capital by trying to trade the volatile market. Trading a stable market is the most effective way to earn more money. Though news trading can give you big profit-taking opportunities, still you should stay on the safe side.
Learn multiple time frame analysis
Becoming successful by using short time frame trading strategies is a very tough task. You must learn to find the perfect trades based on the complex market dynamics. To do so, you need to analyze the different time frame data. For instance, you can’t find the critical support and resistance level in the lower time frame. You need to deal with the higher period while finding the sweet trading spot. Once you pinpoint the sweet trading spot, you should look for the reliable price action confirmation signals. Based on the price action signals, you should execute the trades with low risk. Though you might get confused with the multiple time frame analysis techniques, you should never lose hope.
Trade with discipline
To trade the lower time frame or master short time frame trading strategies, you must become a disciplined trader. Breaking the rules in your trading system is one of the key reasons why naïve traders are losing money. Open a trading journal so that you can keep track of each trade. Identify the losing trades and find the faults in your system. Bring change to your system to improve your short term trading strategies.