Today we have for you the 3 biggest mistakes you must avoid with the 2-minute strategy. We always tell you about what you need to do to make money with the two-minute strategy. Why? Because it is one of the best strategies to start making money! When we started to try this strategy, we made some mistakes, so now you’ll learn how to avoid those mistakes to become a better trader!
One of the biggest mistakes is not trading against the trend!
One of the biggest mistakes is when you trade against the trend. It is a common mistake and it is what many people have been doing. What do we say about trading against the trend? When you are trading the 2-minute strategy you see a wide moving average. This, with a period of 50, it basically identifies that the price is going down.
So, there is no reason why you shouldn’t buy an option or participate in a call option. In this area you would probably have thought, so the MACD crossed two or three candles earlier, so that means this is going to be in the money and guess what, I was out of the money. Why? Because we were seeing a downtrend, we weren’t seeing an uptrend. That it is the reality, that’s why the transaction was lost.
You are not reading MACD, other of the biggest mistakes!
Mistake number 2 is something that many of the people are not doing it and that is that they are not reading the MACD. This is super important! Well, the MACD will tell you when to enter a trade. This has a period of 9,12 and 26. So, period 9 is the blue line and period 12 is a red line! Even you can change it if you want and the way in which you could do it is to change the period of the signal a period of 6 for example. And, the period of 14, thar would be with the moving average. And if you look it would cross exactly at the same time so there is a reason why the MACD in actually has these periods 12 and 6 will help you even get a little more accurate the red line.
Enter when the MACD is about to cross.
Error number 3 is actually another of the biggest mistakes you can make when trading with this strategy! It is at the entry point. Why? Because people tend to enter here when the MACD is about to cross. If you enter when it is about to cross, you are not going to enter at all as the moving averages begin to touch each other.
They’re going to play each other on a candle and once the other starts playing each other, the other isn’t going to play on a candle. And, once the other starts that’s where you come in and that’s exactly where you don’t have to come in. So don’t go in if you notice the MACD is already crossed or even if you want to go in next. It will be too risky. Just as an extra tip, make sure you really take a look at what’s going on in the pair, for example, you have a call option even though it was a downtrend and you can actually see that the position hit the moving average of 50, so this tells you that you can do a change of direction or that this is going to happen.
We hope this article has helped you to be able to increase your win rate with the 2-minute strategy and not make these mistakes that everyone makes when trading this amazing strategy.