When it comes to a lower time frame trading strategy, people often become frustrated. But the smart traders in Hong Kong can easily scalp the market with an extreme level of precision. So, how do they scalp the market? They have worked hard and develop a perfect scalping strategy. Developing your scalping strategy is a very challenging task. In this article, we are going to give you the perfect guideline to create your 30-minute time frame trading strategy. Once you develop this system, you can expect to make a big profit without losing too many trades.
Find the key levels
Before you start trading the lower time frame, you must learn to find the key levels. For that, you must use the daily or weekly time frame. Draw the critical support and resistance level in the daily and weekly time frame and switch back to the 30 minute time frame. You notice the critical support and resistance level matching with the minor support and resistance level. So, these critical and resistance levels with the perfect zone to execute the orders in the Forex market. Once you know the perfect way to trade these levels, you will see the change in your trading performance. So, start working hard to learn about the key levels.
Learning about the trend
Executing random trades in the Forex market in the 30-minute time frame is not so easy. You must learn about the different stages of the market trend and only then you will get the basic idea of trading. Those who are making consistent profit in the Forex market knows the perfect way to deal with the retracement and trending movement. But the new traders in the options trading industry doesn’t even know the perfect way to find the endpoint of a retracement. To find the endpoint of the retracement, you can use the simple Fibonacci retracement tools. Learn the use of Fibonacci retirement tools if you want to deal with the choppy market. If not focus on the critical support and resistance level.
Scaling the lot size
Trading the 30-minute time frame is not so easy. You must learn to scale the lot size or else you are going to lose most of the trades. People often think trading is all about taking high risk in each trade. But if this was so easy no one in the Forex market would have lost money in trading. To become a skilled trader, you must learn to scale the lot size. Based on the quality of the trade signals you need to take the risk. But no matter how good the trade setup is, you should not risk more than 2-3% in any trade. Stick to the conservative trading method so that you don’t have to lose a big sum of money.
Learn from your mistakes
After trading the 30 minute time frame for a few months, you will have many losing trades. If you keep track of the losing trades, you can learn from your past mistakes. Identifying the weakness and fixing the bugs in the system helps you to become a better trader. But to find the weakness in your system, you must use a trading journal. By following the trading journal you can easily develop your trading skills and trade like the pro trader. Mistakes are always appreciated as long as you learn from them. But don’t make such a mistake that can wipe your trading account.
The scalping strategy is designed for experienced traders only. If you think you can scalp the market, make sure you have control over emotions and greed. Without having control of these two factors, you can’t deal with the market dynamics. Try to develop your patience level so that you can wait for the best signals. Focus on the minor details as it tells a lot about the market.