Forex Day Trading Strategies
In recent years, day trading has become highly popularn with the people
. There are many trading gurus out there who are glamourizing day trading. To tell you the truth, day trading is risky and stressful. But it doesn't mean you should say away from it. So how do you succeed at day trading. By learning a day trading strategy that suits your personality and style. There are many day trading strategies. You need to be selective in choosing the righ one for you.
Trend trading is the most popular trading strategy that is used by the global hedge funds and other successful traders. Always remember the saying, " Trend is your friend." Big profit potential lies in trades that capture big market moves. But most of the time the market is not trending. 70% of the market moves occur only 20% of the time.
When the market is not trending, it is ranging. When the markets range,the price action continously rises, touches a top level known as resistance level and then starts falling to a bottom level known as support. This back and forth action continues till such time a new trend is formed in the market. Range trading is not as profitable as compared to trend trading. That's why trend traders avoid doing range trading. When the market is ranging, the best day trading strategy is scalping.
As a day trader, you don't want to lose sight of the overall market. So how do you go about determining when the market trending. You need to use Multiple Timeframe Analysis. Looking for opportunities to buy in a uptrend or sell in a downtrend is much more profitable as compared to buying at the top and selling at the bottom as done in range trading. In multiple time frame analysis, you can use the daily or weekly chart to determine the overall trend in the market and then use a hourly or a 30 minute chart to narrow it down to determine the exact entry and exit points in the trade.
Currency markets are influenced by the large transactions done by the big banks. If a large transaction is done by a bank, it can effect the overall price action in the market in the short term. There is a day trading strategy called, " Fading the Double Zeros" that tries to capitalize on this. There are certain psychological price levels that are used as triggers for large order flows by banks. If you have this insight and believe that the price action is being influenced by large double zero order flows by a big banks, you can use this insight to make many pips in day trading.
There is continous action in the currency markets 24/5. What this means is that the currency markets are open 24 hours, 5 days a week apart from the weekends. You can divide the 24 hours in the currency markets into different sessions like the Asian Session, the European Session and the US Session. There is one strategy known as the London Rush Hour that uses the London Session.
There are many strategies that you can use but in the end whatever strategy you choose, should match your style and personality. It should be less stressful, less risky and more profitable. After selecting one strategy, master it on your demo account. Once you have mastered it only then trade live with it!
by: Ahmad Hassam
Affordable First Time Home Buyer Mortgage Cost Saving Ideals And Ways To Make Apartment Turnover Cheaper And Easier Maxgxl Testimonials Reviews Be An Active Part Of The Review Community Money Problems? Why Not Turn Your Scrap Gold Into Cash? Tips To Find The Best Gold Pawn And Sales Shops Sell Jewelry You Already Have For Cash Online! Affordable Fixed Rate Mortgage Loan Rates Save Money With Discounted Wholesale Janitorial Supplies Hot Etf Investments In 2010! Learn The Ultimate Commodity Trading - Invest In Gold And Silver! Judgment Recovery International - Faqs And Guidelines Real Estate Retirement Options