Everyone knows higher time frame trading is the best way to make money online. New traders always start to trade the market with a position trading strategy but still lose money. The majority of retail traders start to trade the live asset without having a precise knowledge of this market. Some of you might say you have mastered the technical part of this market but do you think you can make a profit with the technical trading strategy but in reality, it’s just a part of the market analysis. Unless you focus on fundamental and sentiment analysis, you are bound to lose money. Even after learning the three major parts of market analysis, you have to rely on other parameters. Let’s discuss the five important parameters which will help you to find great trades in a higher time frame.
Learn pin bar trading strategy
If you learn the proper use of a pin bar, you can easily execute high-quality trades in the daily time frame. Some of you might say pin bar trading system doesn’t work. This statement is wrong. You have to wait for the confirmation candlestick to increase your win rate. Finding a quality pin bar in the daily time frame is very hard. Unless you have strong patience, you are most likely to trade the market in the lower time frame.
Focus on chart pattern trading
Being a daily time frame trader, you must learn to trade the major chart pattern. Chart pattern trading strategy is one of the most effective ways to make money online. It will help you to catch the large market movements. Those who are relatively new to the trading profession should never trade the reversal chart pattern like head and shoulder. Focus on trend continuation pattern to reduce the risk exposure in trading. Once you feel comfortable with the continuation pattern, switch to the reversal chart pattern trading strategy. If required, open a demo account to learn the proper technique of chart pattern trading.
Manage your risk exposure
As a fulltime trader you must trade the market with Saxo Forex trading account. Though they have a strict policy this is only to protect your trading capital. Learn to trade the market with simple risk management policy. Never risk any amount which you can’t afford to lose. The starting part of your trading career is the most difficult section of your life. If you fail to protect your trading capital, you will have a really tough time in the trading profession. Demo trade the market with proper risk management policy and it will help you to become better at trading. Try to assess the risk factors in the daily time frame since it will help you to find 1:2+ risk-reward ratio.
Use Fibonacci retracement tools
You must learn to ride the market trend or else you will always lose money. Learn the use of Fibonacci retracement tools since you can easily find the exact entry point for the trade. Though the trading system is extremely profitable you should never risk any amount which you can’t afford to lose. Never forget the role of risk management policy in the trading business. When you use the daily time frame in market analysis you will see a dramatic improvement in your trading performance.
Demo trade the market
Demo trading is one of the most effective ways to master the art of trading. You might be new to the trading business but with the help of a demo account, you can easily learn to trade without losing any real money. Find a reliable broker like Saxo and open a demo account. Instead of analyzing the lower time frame, analyze the daily time frame so that you find high-quality trade setups. Forget about making a quick profit and focus on long term goals.