Lower time frame trading is not that tough. But the novice traders always make things hard by breaking the basic rules. If you want to become a professional options trader, you must learn to deal with the lower time frame. Since options trading is all about precision, you should be extremely cautious about your trade execution process. The rookies often think they can use the aggressive approach and deal with the market just by investing a big sum of money. But if you do so, you are going to blow up the trading account within a short time.
To improve your skills in a lower time frame trading strategy, we are going to give you some amazing tips. Read this article and you will learn the proper way to deal with the critical market dynamics in the lower time frame.
Lower down the leverage
The first thing which you need to do to trade the lower time frame is lowering down the leverage. Without lowering down the leverage, it will be really hard to make the right choice as you will have intense buying and selling power. The professional options traders usually take 1:10 leverage while dealing with the currency market. So, those who are using more than 1:10 leverage should lower down the leverage in order to make things much easier. It might take a while to get used to the lower leverage trading account but once you do, you will become more confident with your trading process.
Trade at the major support and resistance
You should trade at the minor support and resistance level. Trading the minor levels causes too much confusion. That’s why we strongly recommend drawing the critical trading levels in the higher time frame and then move back to the lower time frame to find reliable trade signals. Such a method is often known as multiple time frame analysis. So, if you want to become good at lower time frame trading methods, you must learn to analyze the different time frames in a very strategic way. To do so, you can also seek help from professional traders and they can give you the proper guidance. But do not trade the real market unless you are certain that you can find the critical support and resistance level with a high level of accuracy.
Chose a good broker
Do you know a good broker is very crucial to your trading career? To trade fx options online you also need to very strategic with your actions. And it starts from choosing the right broker. It might take a while to get used to the advanced trading platform but it is the most effective way to deal with the lower time frame data. Once you start trading the market with a good broker, you will be able to take wise decisions, and thus making a regular profit in the market will become much easier. On the contrary, if you trade with a faulty trading platform, you will face heavy slippage and many technical problems. Eventually, you will become frustrated with your trading business.
Trade in the stable market condition
You should avoid taking the trades during the major news release. If you trade in the lower time frame on such market conditions, you have to deal with the intense volatility of the market. Thus you will make many silly mistakes and eventually lose your entire investment. On the contrary, if you take the trades during the stable hours of the market, you should be able to execute high-quality trades with a high level of precision. Thus making a profit in the market will become much easier and you won’t have to lose trades due to the false. Always check the economic calendar before you take the trades. Consider it as an important checklist and you will start seeing the improvement in your trading performance.