One minute trading AF

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A lot of traders avoid the traps of one minute trading and many refuse to tread along the path of one-minute trading for various reasons. Fear, emotion, psychology and connectivity are all issues traders encounter. Some traders opt to patiently wait for market trends to improve, while some are too conservative and in their opinion one minute trading resembles a casino or the game of lotto, pure chance. Some traders cannot take the heat and pressure, and others have illusory opinions about the workability and behavior of one-minute charts. They tend to look longer term.

For those with the right trading system and proper mindset there are obviously more trades and potentially more profits available while trading the one minute chart. If you can just establish a winning distribution, with more trades winning than losing trades you can use the increased frequency to increase opportunity.
There are traders who will realise there are significant tradeoffs, agreed on that but there is the ability to create profits day by day.

Traders who are prepared to use the one minute bar to trade with by watching one minute charts, to monitor set ups and identify trigger conditions can make one minute trading a major weapon in their trading armory. This is a method that can be mastered and can create regular ongoing and long term profits at FX.

The patience factor of a trader is a main consideration, for the impatient, profit can be had using a workable system. It also takes dedication, however. But why enter forex trading with half a heart? It goes without saying that FX demands perseverance.

Some factors also need adjustment when shifting to one-minute trading. For instance, one may wish to trade in currency that is active in synchronicity with one's time zone, for one-minute trading demands more attention. With dedication and the right system, the objections of many traders become negligible and one-minute trading can prove to be quite fulfilling and profitable also.

One-minute trading is perfect for people who get bored with longer trades or want faster turnover, and are excited when trading several times within one day, opportunity knocks there. For such traders, the difference between five minutes and fifteen minutes is enormous, particularly with regards to managing trades and the trading set up. The negative press attributed to one-minute charts is often simply due to erroneous decisions in where to place stop losses, as well as mistakes in reading the charts and strategy application as the data stream is instant and constant.

Granted, one-minute trading may not garner the number of pips per trade compared to utilizing longer-term charts. It just does not have enough movement between the swing high and swing low points. (These are the short term high points and low points that the market makes while trending in either direction). However, making regular, small profits is exactly what certain traders enjoy. There are slow days for one-minute traders, as there are for longer term traders, when trades are just hard to identify. It really all boils down to preference, and the small percentage of impatient traders, who one may deservedly call the brave elite, prefer it that way and would not change a thing.

Picking the time zone is important though remember, as it could be argued the other way around that the wild swings over short time frames in a sideways market are not always favorable to trading profitably, especially through the quieter Asian trading session. Selection of time zone is deadly important. Some traders just don't see themselves waiting around for set ups and would rather attack the market immediately, which is an approach that longer term or patient traders will always tend to avoid.

The system being used is also a big factor when trading the one minute timeframe, as well as changes to the actual market conditions. Major alerts or sudden financial news do not affect the one minute trader as much as a longer term trader, as due to the shorter time periods the one minute trader spends less time in the market with open trades that could be effected. Their trading sessions when sitting in front of their screens are shorter, if not more intense, therefore they are less likely to experience a news Alert or news spike during their trading shift. Although when such events do occur the price movement can seem very volatile over a short period of time.

Political, social and economic upheavals of course cause major shifts in prices. Systems being promoted by this or that online marketer sometimes lose their effectiveness quickly and with the recent change to a news affected market from the usual fundamental affected market, a lot of systems are running into a run of losses, these systems will gradually fade away, eventually becoming replaced by newer more robust trading approaches and strategies. Is the one minute system the ‘new black'.

It does take more practice to adopt one-minute trading, but then again, everything else also takes time and study anyway. Whatever the system one prefers to use, as long as it is rational and workable, it can be taken advantage of to trade shorter time frames As long as the trader, he or she, knows its intricate workings and characteristics, and sticks to a plan when applying it, trading this way can be lucrative. Each time frame has its individual idiosyncrasies, advantages and disadvantages, including one-minute charts. Every other consideration counts as mere opinion as longer term trading also has its own advantages and disadvantages, many likes and dislikes are personal opinions of the traders themselves.

For trading systems using shorter time frames, it is also helpful to have either an accuracy above sixty percent, (this is the expected win loss percentage) as this gives confidence when placing the trade, as you are favorite to win. When your chance of winning or the probability of succeeding is higher, it makes a trading system easier to trade.

Using a Bollinger band as an example to illustrate this point and where market prices will often bounce from one of the outer bands to the other, which is highly profitable in a ranging market, yet breaks down when applied to a trending market. In the former this system will be accurate 80% of the time yet if a trend starts the bands are broken with the price still going on in a single direction, for what may seem an eternity for a one minute trader. Trading then could result in a string of losing trades. It is always important therefore to set out a plan to trade at least 30 - 50 trades as your test sample when trading with a one minute chart.

To summarize the point, certain approaches will work well in certain market conditions yet breakdown in others so the trader will need additional rules applied to the trading system to establish, firstly, what is the market actually doing, so should I be buying or selling, especially if a major trend starts and we want to trade into that trend. Secondly is the volatility a factor and if so the trader will need a reliable measuring tool for this, and thirdly, preparation for trading plus the time of day, and your trading plan applied with discipline will help create a consistent trading approach.

Time frames should be directly proportional to the time spent in a particular trade. Forex is profitable if you have the ability to retain profits made on winning days, you must hold on to your winnings, the next losing trade or series of losing trades is round the corner. One minute trading seems to deliver an interesting series of winning and losing streaks. For the risk taker or the highly skilled experienced trader, one-minute trading is certainly worth trying. It is not for everyone, just as certain lifestyles are not meant for all.


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