Are you thinking about intraday trading and cutting the potential losses to a minimum? Do you want to make Forex trading a long-term, prosperous career that will allow you to increase your budget? If so, there are several things you should know.
Being a professional forex trader requires a lot of hard work and dedication. You have to be prepared for emotional equilibrium during many different situations. To avoid any unpleasant problems, it’s necessary to learn from your previous experiences and mistakes.
Choosing a good broker is essential after you’ve read the broker review. Sound and the quality broker will save you a lot of time, money and energy. However, if you aren’t successful in winning the high leverage game of Forex trading, it’s essential to learn valuable and crucial practices.
Let’s see what you need to keep in mind on your journey to success in intraday trading!
Intraday trading is prevalent among beginners.
Approximately 85% of beginners in the Forex trading markets are into intraday trading, opening and closing all orders and trades within the same day. Intraday trading is one of the riskiest techniques since the volatile Forex markets can move far in 12 hours.
Even though it’s risky, a trader gets rewarded with pretty quick profits. It’s simple because the narrower timeframes for trades are more risks to face in that case. Day trading, as a technique, relies on good collaboration with Forex brokers.
It’s not very diversified from other Forex techniques, but there are some harsh intraday rules that many traders interested in it have to learn.
The most essential and effective intraday trading practices
If you are interested in knowing the best Forex trading strategies, you need to know that there is no universally accepted answer. However, intraday trading has become one of the most popular choices among many traders.
Day traders in the Forex markets are known to have a couple of very effective practices. Here are the most effective and popular ones:
- Scalping is perhaps the most popular strategy since 90% of day traders use different scalping methods. It means buying or selling right after the open trade gets to the profitability level. Profits can be high, but do not expect long-term high gains.
- Daily pivoting – a prevalent practice that is based on the volatility of everyday routines. Forex traders are picking the lowest period of the day to open a trade. Afterwards, they are in a hurry to close these trades at the highest day market period.
- Fading – it’s when a day trader shorts the pair at once, right after the upward movements. It’s important to remember that the target for the trade’s price gets set once buyers step in. Pips are making money once the market tries to recover the previous price of a traded asset.
- Momentum – this is one of the most common practices. Day traders are usually using the news of solid movements to see what is a current trend. They are picking a trend that is supported by high volumes. The price target is once the volume gets lower. Only a few hours before the news is when traders buy an asset. Afterwards, when the market moves in this direction, they quickly sell it.