Everyone wants to make a consistent profit in the trading business. The moment you start to trade the live asset is the very moment you think about big profit. Due to the use of a high leverage trading account, many individual traders in Hong Kong often trade the market with high risk to secure big profit. This is not the way to deal with the complex market movement. On the contrary, some retail traders use the lower time frame trading system to execute more trade. They forget the fact that lower time frame trading system leads to overtrading and causes a huge loss. Does this mean we can’t scalp the market? Follow the guidelines in this article and you will be able to scalp the market like a pro trader.
Learn multiple time frame analysis
If you intend to trade the lower time frame, you must learn multiple time frame analysis. This is one of the most effective ways by which you can change your trading career. Studying different time frame data allows you to secure quality trades even in the lower time frame. When you look for potential support and resistance level, make sure you are using the daily or weekly time frame. Find the key trading spot in the lower time frame and you will have a decent time in trading.
Trade with a high-end broker
Those who are looking to develop their career in the options trading industry should trade the market with the high-end broker like Saxo. Think like the professional traders in Hong Kong and try to ensure a pro trading environment. Since you will be trading the market in the lower time frame, every second count. A small delay or glitch in the trading environment will result in catastrophic loss. Some of you might think a high-end brokers like Saxo are charging heavy fees but if you assess their offered service you will never have a tough time in trading.
Learn the use of MA
MA stands for the simple moving average. Those who are scalping the market at the extreme market condition know the importance of a simple moving average. By using the 100 and 200 days SMA you can predict the price movement with an extreme level of accuracy. The 100 and 200 day SMA offers excellent support and resistance to the retail traders. By setting pending orders at those levels, you can expect to make a decent profit. Before you start using these SMA, make sure you are developing your skills by using the demo account.
Find the weakness
To make your life better, you must find the weakness in your trading system. The inexperienced traders always think they know the details of this market. If you analyze the trade history, you will find many faults. Instead of depending on the trading strategy, you should analyze the losing trades regularly. Think about the pro traders and try to follow their guidelines. They always back test their trading system once they start losing frequent trades. You have to understand the fact, scalping is the most difficult task in trading. To change your life, you must follow proper rules and precise guidelines.
Be a confident trader
Scalping is all about perfect execution of the trade at the right time. If you fail to predict the price movement, you are not going to become a successful trader. Some of the retail traders can analyze the important variables still they lose money since they don’t have the confidence to trade the market with confidence. Psychological factors play a great role in your trading profession. Unless you develop your mindset you will never be able to learn new things about this business. You may have to lose a few trades in a row but this is not the end of your trading career. Be a confident trader to become a successful scalper.