Day Trading Strategies
Day trading is an excellent option who is seeking quick returns in the forex market. The market position is held for a limited amount of time, making it possible to open and close within one day for a trader. When trying out day trading strategies, your main goal should be making the most of the volatility that can take place within a trading day. Also, they are protecting themselves from the risk that can occur overnight when markets are not open.
Day trading is excellent trading and can give good returns, but can also result in huge losses if one does not have a solid strategy. Day trading strategies are necessary when you are looking to capitalise on frequent, small price movements. Below are some day trading strategies for beginners that will help you get started.
Click on below video : Is there a Best Time of the Day to Trade for UK Traders?
3 Day Trading Strategies for Beginners
1. Find Out The Right Entry Point
You will need to understand of supply and demand to get the most out of day trading. When there is minimal supply, there is fixed to be more demand so that the price will go up. If the supply is extreme, then the demand may be low, meaning the price will drop. By looking the way the markets have moved historically, you could make a trade that leads to profit.
2. Set Your Limit
You may be intrigued to trade a large amount of your trading account if you are experiencing what looks like a streak of a good chance. However, you need to have a good budget and then set a percentage of your total budget to trade for any position for the day that you want to take up.
This position may be 10%, and you would need to assure that you do not exceed it. Even if it appears like you are missing an opportunity, it is better to stay disciplined.
3. Know When to Trade
The most volatile trading time during the day is within the first opening two hours of the trade when market sessions overlap, and the last hour before trading closes. At this time when you trade you are more likely to make a profit as price movements are at their largest.
To ensure that these day trading strategies work for you, here are some tips on day trading for beginners.
- Start with small by trading a maximum of two pairs when you start out. It will make it simpler for you to track your trades.
- Do Research – Having the latest forex market news at your fingertips help you to create the entire list of currencies that you should trade.
- Have the right tools which include a computer or laptop, an excellent, a broker, reliable internet connection and the right trading platform.
- Manage your expectations for both profit and loss, and ensure that the methods you are using for entry & exit of trade are well outlined.
Click on below video: Day Trading Entry and Exit Signals
Day trading helps you make some money with ease; using your mind and a strategy to get profits. As long as you remain disciplined, follow through with your trading plan and practice patience, you are taking leaps and bounds to high returns.
Click on below video: 2 Tricks of Day Trading