Some market movements are so small that they are completely ignored by the media and even technical analysis traders, and there is a trading strategy in the market that focuses on these small market movements. Traders using this strategy are not affected by market stagnation, economic downturns, or sharp price fluctuations.

This trading strategy is known as tick point trading. Tick trading is one of the most misunderstood and seriously underestimated trading methods for traders on the Exness platform, and it is definitely worth checking out. If you've missed too many big rises or falls in the past and aren't sure what to trade in 2024, the tick point trading strategy might be just what you're looking for.

Profit from inconspicuous small fluctuations

So, what is tick point trading? Instead of waiting for the spread (basis points or mini pips) to widen and form a volatile trend before trading, tick point traders focus on small inconspicuous movements in the market and try to profit from them. These small, seemingly random fluctuations are valuable opportunities for tick point traders, and they happen every second of every day.

While traditional traders stare at static charts for hours, waiting for large market movements, tick traders are always in action. For ticking traders, the market has never really been calm.

How tick trading works

First of all, the best way to learn is to practice. Therefore, please go to your personal section on the Exness website to confirm that you are using a risk-free demo account. In this way, you can get a look at the real-time trading results before investing real money in the tick trading strategy.

Tick Point traders tend to use higher leverage, which can exponentially increase profit potential but also increase the probability and speed of losing money. Before trading with a live account, you should try various levels of leverage to find the one that suits your profit/risk appetite.

Let's log in to the browser-based Exness Chinese website trading terminal and open the Bitcoin chart. The cryptocurrency market never sleeps, so there are plenty of price movements that are suitable for testing tick point trading strategies, but you can also apply tick dot trading strategies to every trading asset.

In the upper left corner of the Exness platform web terminal, i.e. above the asset name, you can see the time period options for the chart. Long-term traders set the time frame of the chart to 4 hours (4H) or 1 day (D), while tick traders will zoom in on the time period to 1 minute (1m).

Now, use your mouse to stretch the timeline at the bottom of the chart until the grid shows the Bitcoin price report by the minute. You will find that the price is beating non-stop. This is because there is millions of dollars in buying and selling traffic every second.

Before opening an active order, let's talk about spreads. The spread is the difference between the bid and ask prices. The spreads on the Exness Chinese official website are low and competitive, usually represented by red and blue lines on the chart.

To profit from your buy order, the sell price must be higher than your order price. In simple terms, you want to sell your assets back to the Exness platform at a price higher than the bid price.

For example, click on the blue "Buy" button on the right and confirm the order. You now have an active order in your demo account. You are trading on the real market using virtual funds.

When you click on the order directly on the chart, a pop-up window will appear on the screen to allow you to set your Stop Loss (SL) and Take Profit (TP). Change the option from asset price to currency, then use the symbols "+" and "-" to set the limit price. Let's say a take profit of $10 and a stop loss of $10.

Now, you can sit back and slowly watch the market fluctuate. If you want to adjust the TP and SL, simply drag TP and SL up or down and click the yellow "Modify" button to confirm.

At this point, you might think that the price must move significantly to generate profits, but if we zoom out and look at Bitcoin's price movement over a few hours, you will see that the set stop loss and take profit ranges are very small compared to the overall price movement.

If we continue to zoom out to the weekly view, we see that spreads, take profits, and stop losses on the weekly chart are more volatile than on the daily chart.

Note that the overall trend direction of these three timeframes is not the same. For tick traders, the price is falling. For day traders, the price is trending bullishly. For long-term investors, prices tend to stabilize with no significant ups or downs.

As a result, tick point traders usually focus less on trends. Even if an asset is trending downward as a whole, every day there will be a price that goes against the overall trend for a few minutes and seconds.

In other words, if market sentiment indicators indicate that an asset is weakening for some reason, you may want to think twice before trading against the trend.

Is tick trading a strategy worth trying?

Long-term investors will tell you that tick trading is just a guess. However, tick point traders will say that long-term investing is just guessing. Is tick trading legal? Needless to say, yes. Large hedge fund institutions using AI bots have made millions of dollars using tick point trading strategies. In fact, such micro investments have been collectively driving changes in the market, even in the absence of drivers such as press releases.

Whether you want to earn $10 or $10 million, tick trading works the same.

epilogue

The tick pip trading strategy offers a dynamic alternative to traditional trading strategies. In a market full of uncertainty, using tick trading strategies to profit from small movements can be particularly tempting. For traders who are willing to accept the fast pace and risk, the tick pip trading strategy provides profitable opportunities every day, every hour, even in the face of stagnant markets.

Fun fact: When keeping an eye on open orders, you may see the price drop to the point where the stop loss turns red, and the order is in a loss. Usually, the price at this time triggers the stop-loss mechanism; The order will be closed immediately and the order loss will be deducted from your total equity. But on the Exness platform, you will not encounter such a situation.

The Exness Chinese official website has a very generous feature, namely liquidation protection. This feature can help you stay active in the market for longer, giving you the opportunity to regain profitable results. While this feature is helpful for traders of all trading styles, it is especially beneficial for tick point traders.

Even with take profit and stop loss setting, it is crucial that tick point traders keep an eye on their trades. You may be excited and nervous when you see the price close to your limit price, but when the limit price is triggered and the trade results are factored into the overall equity, you will want to open a new order immediately to set a new limit price.

If you don't have the interest or patience to sit still and stare at the charts, consider less time-consuming strategies like price action trading.