How To Trade The 5m Timeframe (it's not the same)

All right, in today's video I'm going to be going into how to trade the five minute time frame properly because there's a lot of things that go into it people don't think about like they're not actually making the profit they can be or the profit that their back practicing results show. So in this video I'm going to teach you how to close the gap between practicing live markets when trading the lower time frame specifically. All right, the first thing is obviously dealing with spreads. Now the results you get practicing will be a lot different to live markets purely because of spreads as the most simple reason. Now, so looking at this, if you were to get in on where the candle's actually at, you're actually going to be putting up here. And it's the other way around for supplies. So, essentially, there's a couple things you can do to get around this. And it's going to take intuition in the moment and practice for what you actually decide to use. The first one is, let's say your entry is supposed to be on this bullish candle close. So, this one right here, the closed. What you would do to misgate spreads is wait for the next one to open, make it bottom wick. Be very quick with this. As soon as it makes the bottom wick, you enter. So obviously if the price is actually down here the spread's going to be at this where your entry is supposed to be and then you technically get the exact entry that your trading view would show. Now depending on how much momentum is actually in the markets you can decide whether to use this or not because there is a chance that the next candle opens and it just takes off with no bottom wick and you end up missing the entry completely. Of course it's very rare, right? If you're looking through all the candles here, almost every single one of them will have a bottom wick and a top wick. So it's unlikely that it's not going to create it. If you look at a situation like this, well, this bearish candle was massive. There's loads of momentum and so it's almost expected the next one is just going to continue down with lots of momentum and it didn't make a top wick. So, it's up to you to judge when you're going to use this. Most of the time I don't use this method, but it's definitely one that's possible. Okay, so the next one here is something again you have to use intuition in the moment to decide whether to do it or not. I actually used this in my last live trading video, so if you haven't watched that, then you can go and check it out. But essentially when you have your TP you can choose to extend it to where that one to two let's say in terms of profit would actually be because based on the trading view you want sure right here it might be a one to two but in your actual live markets on your MT5 whatever terminal you're using that's not going to be a one to two. So obly you can extend this you know to actually include the fact that that will be your correct profit point. The risk with that is of course that it hits on trading view and you technically should have won the trade, but you're waiting for it to hit your actual one to two and then it just reverses and you lose. So you have to use this when you can see there's momentum when it's highly likely to continue past where your TP is that little bit extra distance to give you the correct risk-to-reward. And in doing this again there's risk that it might just fully reverse. So you have to be aware in the moment of when you can actually use this. Now, all these things are important with the five minute because to maintain your edge, you still need to have that higher riskreward because obviously every loss you take is going to be a full loss minus 1% however much you risk. Whereas, if you're not doing any of these things, every win you take will be slightly reduced and you don't actually see the correct results. Now, if you're trading a pair like Euro USD, for example, this is not going to be much of an issue because obviously Euro USD doesn't really have any spreads. Same thing here on EuroGBP. It must just be the thing with euro pairs specifically, but they really don't don't have spreads and obviously that's going to make it easy so you don't have to do this. But a lot of the best performing pairs, especially the M pairs, they tend to be the best performing, they do have fairly large spreads. So we obviously have to be aware of that use to our advantage. Of course, of course, always use an account with raw spreads for lower time frame trading or it's just not going to work whatsoever. All right. Second thing here is risk management. Now, when you're entry on the 5minut or anything lower, it has to be very quick. A lot of times if you don't get in as soon as it closes or right away, you're going to miss a trade or get a bad entry. So you need to have a way to instantly calculate lot sizes without any sort of actual calculation, without inputting random values. For me, for the last 2 years plus, I've used magic keys essentially risk management. There's a physical version which is really nice to have a bit more expensive and there's also an on-creen version. Now with this, what it will do is basically instantly calculate lot size for you. All you do, very simple, I'll give a quick demonstration here. You're about to take a trade. So, you have everything on the screen ready to go and you very simply just going to drag your stop loss to where you want it to be. No matter where it is, no matter where you put it, the risk will automatically and instantly calculate. So, this will be 0.5%. Because that's what I have it set to. No matter where I put the stop loss, and as soon as I want to enter, I just press the button on the keyboard and I'm in with that much risk. This makes it possible to instantly enter trades on the lower time frame without having the issue of, you know, trying to calculate lot sizes while it's happening and then missing the entries. So yeah, this is not a sponsor or anything. I've used this for over two years. Like it's amazing to have. And yeah, if you're interested in buying this, I'll leave a discount code in the description as well, so you can go and check that out. All right, so this next part is intuition. For the five minute time frame, you need to have that intuition of when to take and not take trades, even if it's not 100% concrete or 100% rules based. Now, what I mean by this is there's a 100,000 reasons that could happen in the moment where oh, you didn't take this trade because of this or you got a late entry, this thing got messed up this time, this happened with spreads. There can literally be a new reason every trade you take for why you didn't make the profit you should have. So on the flip side of that, of course, you could also take losses that you technically shouldn't take. So you have to develop the intuition to know, cool, this one is technically in the plan with all the rules, but I can just really see this is not going to win. Now, this is why it's so important to develop selfrust by actually doing everything in real life that you say you're going to do that you want to do. Cuz if you don't, you won't develop the selfrust, confidence that in yourself to follow and stick to that intuition. when you can tell a trade is not going to win and you take it anyways. Well, that wouldn't have happened if you could 100% trust yourself because you are 100% disciplined. So, it's about building that self trust and self-confidence so that your intuition can actually play out because there's probably so many times where you've been in a trade and you're like, "Yeah, I kind of knew this wasn't going to win, but I just took it anyway." On the flip side of trade, you can clearly see was going to win or, you know, something like that and you didn't take it. It goes both ways to develop your intuition, practicing 100%. You can do years worth of data and then it trains your mind subconsciously to recognize the patterns of the charts. You don't need to then even think about it. You'll just have that feeling for the markets. The only reason my technicals and intuition is so good after the live trading experience I've got is because of how much back testing I actually did. Most people think the purpose of back testing is something completely different. But in reality, you can get such good intuition from practicing that you don't even have to think about your own analysis. So when people are, you know, in the markets, they're seeing this trade lost for whatever reason and, you know, they they're trying to find reasons for it every time. When you have the intuition, you don't need the reasons for it. The second part is using your stop loss and moving it around depending on what's happening. So you can tell based off the momentum in the markets whether or not to move your stop loss, whether or not to give it a little bit extra room because spreads. You have to be extremely decisive in the moment and you have split-second decisions when you're doing any of these things. It's not okay, should I do this? Let's wait and find out. By the time that's happened, the trade's either moved far up or downwards. You don't have the chance to do it anymore. So you have to be very decisive in the moment. In order to be decisive in the moment, you have to know what works beforehand. And that obviously comes from live experience. Also, just seeing loads and loads of trades play out in practicing and how the market actually moved. This will give you that experience you need to subconsciously just know what's happening instantly. Right? That's the levels of intuition I have right now and it benefits me massively on the 5minute time frame. When to take flip entries, you know, when to give stop loss a little bit extra room. All of this stuff just comes from pure intuition. It's very important on the fiveminute time frame. A lot of these things I mentioned actually did in my last live trading video. It's just simply one video and I already did a lot of these things so you can see how important it is to get these down to a high level for the for the lower time frames. Final part of this is you need some type of trade limit, session limit or max risk limit. So what I mean by this is unlimited trades can happen on the 5minut time frame. If you have too many pairs, you're just going to be overwhelmed and it's not going to be possible. You can take too many losses if you don't have a max loss for the day. So maybe you set two losses as a max loss and three as your max trades. So maybe if you take one win, one loss, you can still have another one. Setting these sort of limits obviously means you won't overtrade for the first part. Secondly, you won't get to a stage where your psychology is too bad and you can't trade properly, but you're still trading. You have to know when to just leave the markets, get off the markets. This can be fixed with a couple different methods. The first one is fixed trading session time. So you only trade for this 1 hour, this 2 hour window and any trades within there you can take. That's one way to do it. As soon as this is over, you have to leave the markets though, otherwise it's not going to work. The good thing about this is that you can also then learn what the markets do during a specific time and become in tune with that specific time. For me at the moment, I prefer to just trade at any time because I've got to a stage where my psychology is completely fine to be able to handle that. If I want to do something in the morning, I'll go and do that thing and I won't trade. If I don't want to do that thing, sure, maybe I'll be at the markets for a couple hours and see if there's any good positions. If the markets aren't looking good, then I'll just leave because I can already kind of tell if the session is going to be good or not before it happens. Again, mostly because of how much practicing I've actually done and how much I've seen, how much past market data I've seen. So, setting these limits is very important on the 5minute time frame. Otherwise, you can easily spiral, easily blow accounts, and just lose your edge from things that don't even need to be there. And so yeah, that more or less sums up the main factors for the 5minute time frame that you need to be aware of. If you have all these things down, just imagine how much easier it will be for you because one split-second decision is usually the difference between a couple percent worth of profit and the five minute time frame. Maybe it's between taking a loss and taking a win or just not taking a trade all down to intuition. So, if you can obviously for one build that daily life with the habits where you're doing everything you want to do and everything you say you'll do, then you're going to have 100% trust in yourself. And when you're in the markets and there's potential to make money from doing random things and there's no one stopping you from doing it either, you have to be in complete control of that. So, being in that state, being in that situation is 100% a must for the 5minute time frame. all these other things. I'm going to be obviously continuing to upload my five minute live trade videos. So, you can see me doing this in the moment. And, you know, whether I do this weekly or not, I'm not sure yet. I probably won't do it every week because I do like to trade focused and by myself a lot of the time uh without having the recording or anything like that going on. So, maybe every other week I'll post one of those. And you'll be able to see me doing these things in the moment, getting those live entries, using different intuition. You can make up a thousand reasons or think of a thousand things that could happen on the 5m minute time frame. No day is going to be the same. No trade is going to look exactly the same. So you obviously have to be aware of that and making these decisions, split-second decisions in order to be profitable on the 5minute time frame. Otherwise, chaos in shoes and you're just going to have no chance. So that's it for today's video. Go and check out my live trading video. There was maybe seven, eight trades in a full week of trading. It's like 40 minutes long. Everything is in there you can eat. So go and check that out. And that is all for today's video. [Music]