There are many traders who often trade the lower time frame to make some quick profit. But in the long run, they are the ultimate failure of this industry. If you look at the success rate in the financial industry then you will notice that it’s the long time frame traders making consistent money. The Forex market can be traded in a number of different ways and there is no specific trading strategy. You can use the indicator based trading system or even chose to trade the key swings in the market. But most of the traders in Singapore are trading the live market using price action confirmation signal. The rising popularity of price action trading lies behind its simplicity and reliability. But mastering all the price action confirmation signal is not all easy rather it is one of the most complex tasks among the professional price action trader. And if you ask them which time frame they trade then the ultimate answer will be the higher time frame.
There are many reasons for which the professional traders don’t like the lower time frame. However, some expert often uses the lower time frame data as part of their multiple time frame analysis but they always give more emphasis to the higher time frame data.
False spikes and signals
False spikes and trade setups are the number one problem of lower time frame data analysis. You might be getting tons of trading signals in the lower time frame but the quality of that signals will be pretty bad. However, if you know the perfect way to filter out the best possible trading signals then you have a slight chance of making big money by scalping the market. But you need to understand the fact that all the professional scalpers in the Forex trading industry have years of trading experience. If you ever get any chance to attend a trading seminar in Singapore then ask the professional trader which time frame they trade. You can be 100 percent sure the answer will be the higher time frame.
If you ever open Forex trading account Singapore, then make sure that you have learned about the risk factors of this market. Don’t think that the lower time frame data will give you golden opportunity to get rich quick within a short time frame. If you read many different books on trading written by successful Forex trader then you will be surprised to see that all of them are doing their analysis on the higher time frame. However, at times they switch back to the lower time frame data to make some quick profit. For instance, during the event of the high impact news release, the market becomes extremely volatile and it’s nearly impossible to get into the trade using the higher time frame candlestick pattern. At that very moment, the professional price action traders switch back to the lower time frame to find accurate trading signals.
Quality trade execution
Trading is all about quality trade execution. If you truly want to become a successful trader then you must consider the higher time frame data. At times you may trade the high impact news data but make sure that you are well familiar with the highly volatile market condition. If possible use the demo trading account to learn the art of news trading. But always remember that news is trading is not suitable for all traders. If you are trading with a small amount of money then you might even lose your entire trading account due to a single mistake during news trading. So it’s always better to stay on the side line and wait for précised trading signals in the higher time frame. Before you place your trade also do the fundamental analysis so that you get a clear idea about the strength of the market trend.