Forex Day Trading Strategy
Forex daily strategies
The choice of the trading strategy for the focus depends on many options as the character of the particular strategy (psycho-logic and tempo), as well as the suggested timetable All the three categories on the focus are divided into one of three categories:
The popularity of daily strategies
To start working on forex, the first time you need to determine what timeframe it will work with. Among the many strategies of fox day trading, it is especially popular among the starting traders, because in this case it is possible
often make a lot of deals and open positions very often during the day. In fact, the cases when the daily strategies of the Forex cause newcomers losses, are also fairly common. Since for such a trade you need both experience, and cold blood, and enough free time.
Tips for beginners
Differences between day trading
Experienced traders who often combine several options for the trade, it is also important to know the strategy of fox day-to-day trade in order to achieve the best
- In fact, the forex strategy for daytime time fends is no different from others. However, on the daily charts, the market gives more accurate signals, and the temporary fluctuations of the price are not very volatile.
- Day trading includes in itself and trading on the basis of important news. Of course, for its use, the trader must have sufficient experience and good knowledge in politics and economics.
- Indicators, figures, and technical levels are used in the same way as in the intraday trade, but in the daytime, they have more weight and significance. Often, the market guru before you started trading, first analyzes the daily charts of currency pairs and only then starts looking for more small amounts of money for the money.
Trading on daily charts (D1 timeframe) has several advantages:
Saving time. There is no need to sit in front of monitors while waiting for a trading setup. It takes about 30 minutes a day to analyze the graphs.
No stress. When trading on a daily timeframe, the trader experiences much less psychological stress.
Fewer trades generate more profit.
This section contains simple non-indicator daily Forex strategies.
How will trading strategies for daily timeframes improve your results?
If trading is not going the way you would like and you feel overwhelmed by the large amount of data filling your brain every time you sit down to analyze, you will probably need some strategy changes. Let’s focus on daily charts.
If you are struggling with any of the problems listed below, you will definitely benefit from switching today’s Forex trading strategies.
Excessive trading – you open too many trades; the reasons can be different: greed, indecision, lack of a plan;
Fear of opening a position – leads to the fact that the trader misses a lot of profitable trades;
over-analysis – time spent in front of several charts and analysis of 20 different currency pairs; entering a trade without a valid reason (in fact, the only reason is fatigue and losses);
Trading dependence – a trader wants to be in the market all the time and spend all the time behind the monitor screen; at the same time, despite the time spent, he still loses money;
Inconsistent trading – a few good weeks and then a few bad weeks that “erase” previous gains.
Best Forex Strategies – Forex Breakout Strategy
Trading breakouts is a great example of a simple forex strategy that does not require a lot of time and effort but can be too tough for beginners who cannot boast of patience.
The setting is our everything. It is by choosing the right setting that you will save yourself time and nerves. If the eye knows what it is looking for, the study of charts is reduced to a second scan of the situation. If the setting is not the right one, move on.
The setting for trading breakouts is the horizontal movement of the market – a relatively narrow, relatively low-volatility horizontal corridor, where bulls and bears are equal in strength for some time.
We use a 200-period moving average on the daily chart. 200 days because there are about so many trading days in a year. Simply put, this is the annual average price. Depending on the volatility of the instrument, draw a corridor of about 50 points in each direction from the average. The close of the daily candle outside the channel signals a breakout.
The entrance is simple. Every time a candlestick opened on one side of the middle and closed on the other side, and even beyond the corridor, we enter in the direction of the breakout. It will be a good 60 pips minimum candlestick.
Also, be prepared to keep the drawdown. The movement is often followed by a quickdraw.
The way out – no less important thing in trading strategies for newcomers to the Forex market – is also simple. A hard stop is one hundred percent, we don’t move it anywhere under any circumstances – we set it on the moving average itself. If the price returns, it means there was a false entry, they lost a little more than the length of the signal candle. As the price moves, we set the Trailing Stop, which follows the price at a distance of 60 points.
The strength of this strategy is its simplicity and simplicity in execution. A candle is drawn once a day around midnight. Before going to bed, we scanned at least 50 couples and went to bed. You don’t have to look at the market all day. The next evening they checked again.
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