Do you think scalping is an aggressive strategy? The naïve traders always try to earn more money without thinking about the risk factors. But risk factors is the most important thing in the currency trading business. If you want to survive in the retail trading profession, make sure you are not pushing yourself without following the money management rules. If you stick to the basics of investment rules, you can even trade the 30-minute time frame like the pro traders. Some of you might think you the naïve traders can’t trade the 30 minute time frame. But if you follow the tips of this article, you can expect to make big profits.
Use the 100 periods SMA
To trade scalp in the 30-minute time frame, you must learn to use the 100 periods SMA. The 100 period SMA acts like dynamic support and resistance level. If the price hits this level, it tends to respect most of the time. So, if the traders can execute the orders based on the direction of the market, you can make big profits. Some of you might think 100 periods SMA doesn’t work best in the cross pairs. They can use the 200 period SMA to trade the cross pairs.
Look for candlestick pattern
You need to look for the candlestick pattern to execute the orders in the Forex trading account. Unless you can trade the market with the help of a price action signal, you are going to lose money. If you want to make a profit, make sure you learn about the candlestick pattern trading strategy. Candlestick patterns are most used to find potential buying and selling points. Those who are not aware of the price action trading strategy can use the demo account. Using the demo account gives the perfect environment to learn about price action strategy. The price action trading strategy gives the perfect execution point to the retail traders. So, look for the potential candlestick pattern at the 100 period SMA.
Analyze the risk to reward ratio
Since you will be trading the 30-minute time frame, never think you won’t have to rely on the risk to reward ratio. No matter which time frame you chose, you must set the risk to reward ratio at least 1:2. The pro scalpers in Hong Kong often use 1:4+ risk to reward ratio while scalping the market in the 30 minute time frame. Trading in a lower time frame doesn’t mean you will forget the money management factors. This is one of the key things which can save your capital. Focus on your trading skills and try to improve your knowledge by learning from the mistakes.
Analyze the major news
You need to analyze the major news before you trade the 30 minute time frame. Without analyzing the news, the retail traders often fail to set the perfect stops. Once you learn to analyze the news factors, you can make a decent profit. Things might be hard when you trade a 30-minute time frame without assessing the news factors. Learning to analyze the major news is not all hard. Once you start to focus on the core concept, trading will get easier.
Develop your trading skills
You must develop your trading skills to trade the 30 minute time frame. You may think you know the details of this strategy but to improve your execution process, you must learn things like multiple time frame analysis, Fibonacci trading strategy, etc. Try to read books on scalping strategy so that you can INS and OUT of the strategy. Try to learn from your trading mistakes so that you don’t have to lose money while scalping the 30 minute time frame. Once you slowly develop your skills, you will feel the confidence and it will make you a better trader. So, focus on your skills and trade 30-minute time frame like the elite traders.