Changing your lifestyle based on the trading profession is very easy. If you can learn to trade the market with discipline, you can expect to change your life in less than 1 hour. Many traders in Australia have secured financial freedom just by trading the financial instrument. But making a consistent profit in the Forex market is a very challenging task.
The new traders lose money since they trade the lower time frame. What if we tell you that you can make a profit by trading the 1-hour time frame? Let’s learn the perfect way to trade the 1-hour time frame.
Key support and resistance
The first thing which you need to do is find the critical trading zone. And for that, you have to analyze the daily time frame. Does this mean you will not be trading a 1-minute time frame? To trade a 1-minute time frame, you must learn to find the critical support and resistance zone in the daily period as it gives more accurate data.
Some of you might forget the fact, multiple time frame analysis is used in different trading strategies. After you find the critical support and resistance level, you need to work hard with the trade execution process.
Executions of the trade
Executions of the trade is a very easy task. You have to rely on price action signals. Many elite traders in the Forex trading industry often forget that trading is all about a conservative approach. You can’t change your life by trading with aggression.
Try to look for the potential candlestick pattern at the critical support and resistance zone. Once you find the potential trade setup execute the trade. Since you will be trading the 1-minute time frame, you need to carefully observe some other important variables.
News analysis
Unless you learn to analyze the major news all over teh world, it will be really hard to make a profit by trading a 1-minute time frame. Due to major news events, the market exhibit big spikes and becomes hard for the traders to make a profit.
Being a 1-minute time frame trader, every spike should be counted. Stop trading the market during a major event as it can greatly increase the risk. But those who have strong knowledge of news analysis can make a decent profit by trading the news in the 1-minute time frame.
Consider the risk factors
The professional scalpers always consider the risk factors. They never execute any trade with high risk since they know it can increase the risk to a great extent. To make your trading job, you must follow the conservative trading method. Never think aggressive steps can make you rich. No matter what, stop risking more than1% of your account balance.
Stick to the conservative method so that you can make a decent profit without risking a big portion of your capital. Once you get skilled, start trading the market with confidence.
Booking the profit
Those who trade a 1-minute time frame must learn to book the profit. To book the profit you should focus on the trailing stop loss features. It allows you to ride the trend without having any risk. But this is a very advanced feature and without having enough experience you can’t expect to make a profit by using this method. Take your time and try to develop your skills to use the feature. Those who are confused can use the demo account to develop their skills.
However, you can also use the rigid risk to reward ratio as it gives you more scope to make a decent profit from this market. There is no reason to risk a big portion of the capital since you can easily learn to trade with low risk. Trade with a positive RR ratio so that you don’t have to think about the losing trades. Once you feel confident with your strategy, start investing more money.