Why should you avoid 1-minute trades on Olymp Trade?
More and more traders are choosing derivatives over other financial instruments. The reason for this is that they are easy to use, or so it seems. Trading in this type of financial derivative essentially determines the direction of the price within a certain period of time. And you will get the profit if your assumptions are correct. The term of this financial derivative is precisely defined. You can find that the expiration period varies from 30 seconds to even a few months, depending on the broker. With Olymp Trade you can open a derivative for at least 1 minute. You may think that the shorter the deadline, the faster you will make money. In fact, the shorter the time, the greater the chance that your resources will be wasted. If you’ve been here for a long time, you may find that I often recommend opening a position in the derivatives or currency pairs market for at least 5 minutes. Today I want to explain why.
Minor Price fluctuations
Once you enter the official website you can see a chart of the EURUSD currency pair with 1-minute trades. The last candle on the chart is bearish and the difference between the opening price and the closing price is only 0.0001. Your job when trading financial derivatives is to decide whether the price will go up or down, but it is very unlikely to predict a move as low as 0.0001. The situation is very different when I open a 5-minute position. The probability that my calculation is correct increases significantly. This is not only the case on the Olymp Trade platform. Even if you choose a different broker, you should expect equally low price fluctuations after just 1 minute. Operations you should avoid 1-minute positions. You need to open the trades that are long for the price movements to be stronger. Trade long-term positions on the Olymp Trade platform. You already know that you don’t want to open a position for 1 minute. Minutes or more. Now the duration of your trade is closely related to the period of the candle you are using. If the candle period is 1 minute, enter the trade for 5 minutes. If the candle period is 5 minutes, you can hold your position for at least 15 minutes. This was the first reason why choosing long-lived positions in 1-minute trades makes it easier to predict where the price will go and small fluctuations will not affect the operation. The second reason for trading longer time frames is more psychological in nature. There is simply less pressure on you. Look at the graphic on the page. This is also the chart of the EURUSD currency pair with candles at 1-minute intervals. Focus on the uptrend in the middle of the chart. This is clearly an uptrend, although not all candles are bullish. Below that are some bearish candles as there will always be some price corrections. If you decide to open a 1-minute trade, you can easily lose as you can enter the consolidation points, but if you open a position of 5 minutes or more you will most likely make a profit as you will be right after the Price correction continues the upward trend, although it still contains many factors for a profit. The same thing happens during the downtrend. It’s not just made of bearish candles. If you open a 1-minute position, you can easily hit the moment of consolidation and lose. Open a long-term transaction and you will increase your chances of winning.
Some argue that brokers manipulate the price in short periods of time so you are likely to lose money. This information is not verified, but the truth is that the tampering is more visible over longer periods of time. So instead of worrying about whether or not the broker is manipulating prices, just trade over long periods of time. I never enter 1-minute trades on the Olymp Trade platform? Some situations in the market can be conducive to taking short positions and those where a strong trend is observed, such as when the longer bullish candles develop during an uptrend. a good eye. Also, it is beneficial to use support/resistance levels in conjunction with other technical indicators so you are sure that the trend is developing.
That was all I wanted to say today. If you have any comments, share your experience with us, or just want to let us know how long you keep positions open, please use the comments section below.