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Why higher time frame trading strategy is profitable

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  • Why higher time frame trading strategy is profitable

    Selection of the time frame plays a great role when it comes to trading success. If you trade the market in the lower time frame, chances are very high you will lose a decent portion of your investment within a short period. You must trade the market in the daily time frame since it generates quality trading signals. But this statement might not be enough for the rookie traders in Hong Kong. The novice traders don’t want to embrace the fact, higher time frame trading is more profitable. They always want to execute random trades to earn more money from this market. But after reading this article you will understand why every retail trader should trade the daily or higher time frame.

    Solves the problem of overtrading

    Overtrading is a very common problem for rookie trades. The novice traders jump into the retail trading business and start placing random trades to earn more money. But do you think this will help them to make a profit in the long run? The simple answer is NO. You need to find high-quality trade setups. When it comes to quality trading signals, you must analyze the market data in the daily or higher time frame. Most of the time the lower time frame trade setups favor the market retracement. There is saying in Forex market, the trend is your friend. So, if you trade with the major retracement, chances are very high you will lose a decent portion of your investment. So, stop trading the lower time frame and become a position trader.

    Helps you to make more money

    Making a decent profit in lower time frame trading strategy requires aggressive trading approach. Trading the Forex market with aggression usually results in heavy loss. You must trade the market with a conservative trading strategy or else you will blow up your trading account in no time. You must learn to protect your investment or else you will have a tough time in the trading business. Think like the professional traders in Hong Kong. They never scalp the market since they know the lower time frame trading strategy is extremely risky. If you intend to live your life based on trading, make sure you are conservatively trading the market. Stop being an aggressive trader and be ready to educate yourself.

    Trade-in a stress-free environment

    You must trade the market in a stress-free environment or else it will be really hard to make a profit from this market. The new traders are always losing money since they don’t know the proper way to control their stress. They are always making big mistakes in trading since they don’t know the proper way to control their stress.

    Always remember, losing trades are inevitable in trading. If you trade in the 1-hour time frame, you will have many losing trades. On the contrary, if you trade the market in the higher time frame, you can easily make a decent profit from this market without facing any stress. Higher time frame trading strategy is more relaxing and helps you to make a better decision. Being a new trader, you must ensure stress-free trading environment and for that, you must trade the market in daily or higher time frame.

    Allows you to know your weakness

    If you trade the daily time frame you can easily find the faults in your trading strategy. On the contrary, if you scalp the market you never understand the key reasons for which you are losing money. You might make a huge profit by aggressive trading strategy but in the long run, you will blow up your trading account. Become a conservative trader, since it reduces the risk exposure in every possible way. For that, you must become a daily time frame trader since lower time frame trading always comes with heavy risk.
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