Many forex market traders begin their path to success with daytrading. There are many reasons for that, and the main thing is that the forex daytrading strategy is a very common and popular form of trading.
Why traders choose a short-term trading?
Beginners use a day trading strategy because they can see the result of trading at the end of a day, not a week or a month. Let’s say … they don’t have enough practical experience and knowledge at the beginning, so they can not yet predict the behavior of the market over a long period.
Day trading or involves the implementation of short-term contracts when a transaction may be performed within 5 minutes, a day, hour, and a trader can have just a small budget, but quickly react to the behavior of the market. Daytrading Forex strategy allows avoid big loss due to incorrect prediction.
How to trade
When choosing the day trading forex strategy, it is important to remember that the most important thing is not the trading method but a level of knowledge, expertise and experience. Well, try out different strategies on a real trading account, and with the help of a demo account, which allows you to not risk your own capital. Another useful way to learn more about day trading strategy is to take part in a number of educational seminars.
Types of strategies
Under the daytrading Forex strategy, we understand:
1. Trading at the very short time intervals (1 minute, 5 minutes). Forex Pros note that this is the most risky forms of trading and such traders often trade with small deposits. Analysts and brokers are advised not to meddle in this kind of trading especially if you are a beginner.
2. Trading on the hourly time frame. It is characterized with a high speed trading and not really suited for beginners.
3.Trading on the four-hour time frame. It makes it easy to predict and build curves using some daytrading indicators. This strategy makes it possible to get a decent profit.
Forex Pros do not look for the best forex day trading strategy, but they use their experience and knowledge to create their profitable strategies.