Trading the lower time frame has been a very challenging task. Yet many traders have mastered the art of lower time frame trading techniques. They are known as professional scalpers. Usually, the scalpers take their trades in the lower time frame and secure profit within a few minutes. But learning to trade like a professional scalper is not an easy task. Usually, the traders will blow up the trading account by using the scalping strategy used by a professional trader.
So, is there any way by which we can learn to become a professional scalpers? Well, you need to be extremely skilled with your trade execution process. Today, we are going to discuss some key steps which might help you to become a professional scalper within a short time.
Step 1, improve your skills
Scalping is not for intermediate traders. If you think you have a basic knowledge about this market, never consider yourself prepared to scalp the market. You must have strong analytical skills and just by seeing the price movement of the trading instrument, you should be able to determine the direction of the trend. It might take a while to develop your skill to such an extent, but you must not lose confidence in your actions. Those who become frustrated will never learn the proper way to the scalp.
Step 2, develop your trading strategy
A regular trading strategy is not going to work in the lower time frame. You must learn different kinds of trading strategy and only then you can find reliable trade signals with extreme levels of precision. Once you learn different kinds of trading techniques, you should be able to merge different kinds of trading systems and create a robust scalping method. Try to curate a draft for the scalping trading system. For that, you should use a professional demo trading account like Saxo. You may visit their website and learn more about the demo trading environment.
Step 3, test your strategy
Before you start trading the market with real money, you must test your trading strategy. Without back-testing your trading strategy, you will never know the weakness in your scalping system. The novice traders often start to scalp the market with their draft trading technique. But they don’t realize the fact, a draft is not a complete trading system. You may have strong confidence in your trading system but still, you must make a profit for at least one month in the virtual trading environment. If you manage to do so, you may consider expecting to make a regular profit with the trading system.
Step 4, developing a risk management plan
Being a professional scalper, you should be cautious about your risk management plan. If you fail to create a proper trading plan, it will be a very challenge to overcome the major obstacles at trading. The rookie traders often things that they know a lot about this market. They keep on trading this market with high risk and loses their entire investment. Instead of doing that, you should be taking the trades with a 1% risk.
Once you become skilled in using the trading strategy, you may risk 2% of your account balance. But never take more than 3% risk in any trade. If you do so, you are going to blow up the trading account within a short time.
Step 5, develop your confidence
This is the most critical part to become a professional scalper. You must have faith in your trading system and trade this market with long-term goals. Never expect that you know everything about this market. Follow the basic guidelines and strategically take your trades. Forget the fact that you know every bit of detail about this market. Keep on reading new articles as it will help you to build your confidence level. Last but not the least, be prepared to accept few losing trades.