Those who trade the lower time frame always losing money. Making consistent profit in the Forex market is more like an art. And if you want to make some serious profit, you must learn things from scratch. Instead of trading the market in the lower time frame, you need to focus on a higher time frame system. In this article, we are going to highlight 4 key reasons for which you should trade the higher time frame.
Improve your trade accuracy
If you want to make a big profit from this market, you must work hard and develop your skills. And for that, you must improve your trade accuracy. Choosing the higher time frame is the only way by which you can improve your trading execution process. Most of the time the lower time frame traders are scalping the minor support and resistance level. But scalping the minor support and resistance level is one of the key reasons to face too many losing trades. Start trading the higher time frame for a few months and you will never trade the lower time frame signals. If required, demo trade the market in the higher time frame and you see the big difference in your trade execution process.
Allows you to secure more profit
Trading is all about managing the risk. If you want to earn more money, you must learn to analyze the CFD market in a bigger period. By analyzing the bigger time frame, you can secure a high risk to reward ratio in each trade. Things might be a little bit complex at the initial stage but once you learn to trade the market with discipline and focus on the higher time frame signals, you will feel the change in your strategy. Most importantly it will make you confident and help you to embrace the losses. Once you develop the ability to accept the losing trades, changing your life is just a matter of time.
Allows you to trade the major chart patterns
If you want to trade the major chart patterns, you must learn to analyze the higher period. Trading the major time frame in the lower period is one of the key reasons for which the retail traders are losing money. Some of you might not feel the urge to trade the major chart patterns but it is the only way to secure big profits from this market. You might think chart pattern trading is the most difficult system in the world but once you learn to trade the major chart, you can make a big profit without trading the major news. News is the prime catalyst for which we see the massive breaks in the chart patterns. So, learn to trade the major chart pattern in a higher period and you will be able to earn more.
Solves the problem of overtrading
If you want to save yourself from the overtrading problem, you must learn to trade the market in a higher period. Trading in the lower time frame is one of the key reasons for which the naïve traders are losing so much money. Controlling the emotions might be hard at the initial stage but once you learn to gain control of emotions. Unless you trade the higher time frame, you can’t learn to control your emotions. And you learn to control the emotions, you can easily make a big profit. And the only way to learn to control your emotions is to trade the daily time frame.
You must learn to think like the pro trader or else you will be losing money. You are here to make your life better. So, never look for the shortcut as they always result in a big loss. Think about the long term goals and try to stick to the basic rules of investment. Stop breaking the rules as it might wipe your account. Take rational steps to make a consistent profit.