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Why “One-Minute” Trading Strategies Aren’t Quite as Simple as They Seem

Invevstor using mobile trader app. Stock market, investment concept

In the modern trading world, there’s a whole host of content out there suggesting that it’s possible to cut to the chase and get rich quickly when placing trades. Whether it’s a post on Instagram demonstrating the supposed lifestyle of someone who followed a get-rich-fast trading strategy or simply an eBook or similar that makes the same claim, it’s hard to avoid seeing this sort of information.

 

But the reality is far more complicated than these posts would make it seem. So-called “one-minute” trading strategies are just one example of a supposed way to get rich that is far less reliably wealth-inducing than they claim. This blog post will explain why it’s not a good idea to rely on a one-minute trading strategy – and why it’s often better to go for a more intricate and slightly longer-term strategy, even if it’s harder to master.

 

What is a one-minute trading strategy?

 

The one-minute trading strategy, as it is known, has been around for several years. It’s most commonly referred to as “scalping,” and the term “one-minute trading strategy” is a relatively new one that is, perhaps, more friendly and palatable to those looking to sell the strategy as a technique.

 

Whatever term you use, the principle is roughly the same. The trader spends some time analyzing the price charts, generally with the help of a moving average. The trader then waits for some indication of a significant move coming on, assuming that the markets tend to go back to the previous average following a big move. A stochastics indicator can also be used to determine the potential probability of the indicators moving backwards afterwards.

 

Why isn’t it that simple?

 

The short answer, of course, is that if it were possible to make high profits in one minute, then everybody would be doing it! Brokers are private businesses, and the trading markets operate on a profit and loss basis – just like any other company. If it genuinely were possible to incur thousands of dollars of profit without putting in much effort, people across the land would have found that out long ago.

 

Head over to a respected site like AskTraders to read their one-minute scalping strategy guide, and you might also uncover a more profound answer. Trading is a profession like any other, and developing a profession takes an investment of time, energy, and skill. Trading is no different: those who want to build their trading careers need to spend time reading up on the various methods of price chart analysis, for example, researching the different types of trading tools on the table and much more.

 

That’s not to say that it’s impossible to pursue a scalping strategy profitably. Some people do turn a profit from scalping, but it takes much longer than one minute to achieve the desired goals. For a start, many brokers ban scalping outright – so it can take a long time to get set up with an account in the first place. And even if your broker does accept scalpers, it’s unlikely that you’ll make a big profit every time you “scalp” – meaning that you’ll have to pursue a similar process over and over, which can quickly become tedious and repetitious.

 

Other ways to trade

 

The “right” timeframe or way to trade can vary depending on your circumstances and what you need to achieve out of your trading journey. But what is the case is that longer-term trading plans can bring about different benefits. They allow you to potentially make capital growth and profits, for example. At the same time, they also open up a world of potential passive investing – rather than the heavily involved and complex process of scalping.

 

In short, one-minute trading strategies and their cousins aren’t necessarily ideal methods to follow if you’re seeking to improve your trading position and provide yourself with sustainable, long-term profits from trading. They’re a prime example of a method that claims to take not so long – but which is likely to require endless repetition to turn a profit. While it’s perhaps not to be instantly ruled out by those looking to trade, it’s worth thinking carefully about whether this strategy is the right one for you and your needs.

 

 

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