Everyone wants to lead their life without having any financial crises. People start working hard very early in the morning and still struggle to make a decent income to support their family. For this reason, people are always looking for an alternative source of income. Some people start a business but due to a lack of trading capital, they quit trading within a very short period of time.
Things have changed a lot since the creation and expansion of the internet as people can access the online trading industry and execute big trades with a small investment. You don’t have to deposit a huge sum of money to make a living out of trading. Just by using a high leverage trading account you can easily make a consistent profit just like professional traders in Hong Kong. Though there are many different ways of trading the financial instrument, today we will high light some of the key reasons for which you should stick to higher time frame trading strategy.
Reduce your risk exposure
Making a consistent profit in the Forex market is a very challenging task. If you look at the professional traders, you will be surprised to discover their depth of knowledge in this profession. Instead of trading the lower time frame, you need to analyze the higher time frame data. Though higher time frame trading is extremely boring it will help you to find the best trades in favor of the market trend. At the initial stage, you should never trade the market with real money since you will not understand how this market works. Start trading the market with a demo account so that you can learn to trade without risking any real money. Focus on your long term goals and you will be able to trade with minimized risk factors.
Trading with the market trend
There is saying in the Forex market. “Trend is your friend”. If you want to survive in the Forex trading industry you must master the art of trend trading strategy. Some of you might buy an expensive trading system from the professional traders but do you really think this system will work? The simple answer is NO. You have to understand how this market works. To be precise learn to decipher the language of the market so that you can execute quality trades. Stop executing trades in minor retracement as it will always increase your risk factors. Focus on long term goals and you will see significant improvement in your trading career.
A trade like a businessman
The majority of the new traders are losing money since they never consider trading as their business. They simply want to make a huge amount of money by trading with big lots. Things might work at the initial stage but if you consider the long term consequences you will understand the short time frame traders are the ultimate losers of this industry. Create a simple trading strategy so that you can execute a trade in the daily and weekly time frame. Stop trading the market with emotions as it always results in a huge loss.
Trading is just like a traditional business. You have to create a long term plan to deal with the ups and downs of the market. Never trade the market with high risk even though you know the details of this market. Focus on a conservative trading strategy since it will help you to survive in the long run. If necessary, invest some money to get a professional trading course from the experienced traders. But never start trading with real money without knowing the details of this industry.
Being a long term trader, it’s better to learn the price action trading strategy. It will help you to find great trades at the key support and resistance level. So, learn more about the Japanese candlestick pattern to become a better trader in the trading industry.