Some prerequisites for successful one minute trading

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Because of the unique nature of one-minute trading, it requires special considerations that may not be as critical, with longer term trading systems. First of all, one must have a very good & reliable access to brokers, who use platforms which accommodate rapid buying and selling. Commonly used and popular platforms have the ability to set up quick access buy and sell buttons for each currency pair being traded or the ability to create trades directly from the chart.

It is a then a simple matter of hitting the (buy or sell) button, or accessing the menu function or using a keyboard short cut, to allow rapid response to trading opportunities and conditions.

In a liquid market such as Forex, the execution on command is vital and non more so than trading the shorter time frames, especially the infamous one minute candle or bar. Conditions for trading can change very quickly, sometimes within a fraction of a second.

When choosing a broker, one must be thoroughly confident that the agreement regarding execution, fills and slippage be fully understood. Once trading is commenced, there is no room for thinking about whether the broker's policies and conditions are appropriate or acceptable. The Forex market, being of international scope and mostly unregulated, makes it an ideal playing ground for unscrupulous brokers, so beware of making fundamental mistakes like choosing the wrong FX broker before a shot has been fired in anger, or before you have placed a live trade.

There is presently no official legislation that effectively curbs illegal backdoor activities that brokers are prone to engage upon from time to time. So-called OTC FX trading is currently not amenable to effective regulation for providing the protection traders would like them to have, and swindlers and hustlers are taking advantage of the circumstances to make the most money out of such a lucrative and liquid market. Chasing stops large spreads and hidden slippage costs are a few of the easiest ways of taking a traders money.

Therefore, it is incumbent upon the trader to thoroughly understand and study the broker's agreement. Be completely familiar with each party's responsibilities. Be sure to read and study the fine print. Know the amount of margin being required by the broker and what actions the broker can initiate when a position becomes unfavorable to the trader. Some brokers can automatically liquidate an account if the leverage set by the trader is too high. Always have the broker's agreement documents available and ask all the pertinent and important questions before agreeing to anything.

As a one-minute trader, it is also very important to be thoroughly familiar with the platform being offered by the broker. Brokers may differ in the platforms they offer, and one minute trading demands that the platform being used is something that one is completely comfortable with. Most brokers supply a version of MT4 for traders to use, this may assist although the functionality of MT4 is poor when compared with other platforms, but it certainly gets the job done. Many bells and whistles are available, although for a one minute trader the speed of functionality is usually the key ingredient when finding the perfect trading platform.

Unnecessary errors have no place in one-minute trading. Carelessness and mistakes borne of unfamiliarity with the trading platform being used can cause avoidable losses. Therefore, an unfamiliar platform must become familiar and thoroughly tested and practiced upon, before trading real money starts.

Another good weapon in a one-minute trader's arsenal is a comprehensive knowledge of the market and the most liquid currency pairs. EURUSD and USDJPY, for example, are ideal currency pairs to trade with. Although the USDJPY is so much slower, that traders tend to find their favorite trading pairs, based on the success they have trading those pairs and their view of the market and the trading system they employ.
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In addition, one can benefit from knowing the times and sessions in the trading day where the market has more volume, weight of money and displays more volatility or liquidity. This is important for any trader, for the one minute trader it is gospel.

The FX market may indeed be open twenty four hours a day, but there are nevertheless particular hours when more volume is traded compared to other times. London's opening at around 5 to 6 PM in Sydney Australia or early in the morning if you are in New York, around 3AM in the US, is the most interesting time as the market in Europe creates some interesting moves ahead of the busy trading day.

London is the world's major center for FX trading. Trading volume is further added when New York opens at 8 AM EST. These are actually the most liquid times of the day. The markets of Tokyo and Sydney are also significant in influencing trading volume.
These are the prerequisites that you need to learn if you are going to trade the lucrative FX markets using the one minute bar, there are many other ideas and issues you can come up against, these though are many of importance.

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