Day Trading: Success Secrets
Greetings to all tradelikeapro.ru visitors. Today we will talk about such a difficult topic as intraday Forex trading. The video tutorial below is literally packed with tips and tricks that can dramatically improve your intraday trading success. Although technically this article belongs to the Price Action heading, these tips will be useful to any short-term trader. In general, watch everyone.
Do not trade below H1
The first tip relates specifically to intraday trading using Price Action setups. The fact is that the very idea of reflecting the actions of market players through Japanese candlesticks loses its meaning on small timeframes. Those. if you try to trade on the PA, say, on M5, then it will no longer be price action trading, but trading “at random.” Therefore, you should not go below the hourly charts when working with PA patterns.
Don't chase the number of deals. Select the most obvious setups…
You have opened a chart. Look at him. There are no setups. You enlarge the picture, change timeframes, look for at least some reason to enter the market.
Common situation? The fact is that following the stereotype “intraday trading is many, many deals, almost every minute,” you really want to open a position, and then again and again. Only this is no longer trading by the system, but trading at random. Where will it lead? I think you guessed it yourself.
Enter only when you see a clear, “like in books” setup. If you start looking out for something, guessing, looking for inputs is not clear on the basis of what, then STOP SUFFERING FIGURES. Flip a coin and finally enter the market, because you really want it))
All jokes, but again I repeat: enter the market only when you see obvious setups. Just ignore cloudy, incomprehensible situations – wait for clear signals.
Limit the number of instruments traded
Day trading requires quick and clear action from the trader. There is no time for long thoughts. Therefore, a large number of traded pairs will only confuse and distract you. You don't need 20 charts for intraday trading – limit your portfolio to two or three instruments, no more. At first, I would generally advise you to trade no more than one pair.
Risk no more than 1% of your deposit on each trade
Yes, 1% is very little. Yes, I want to make a lot of money at once, preferably with a guarantee, but try to understand the meaning of this advice. The psychological burden is very high during intraday trading. It is very easy to get angry about a couple of losing trades and start making more and more mistakes in an attempt to recoup. It is very, very difficult to remain calm, risking 5-10% of the deposit in each transaction, because during the day we open transactions quite often and there is no time to calm down, there is simply no way to assess the situation thoughtfully and without emotion.
Therefore, the best option is to risk only a small part of your capital. So that in the event of a series of losses, you remain morally balanced and can continue to trade in order to restore these very losses later. At first, try to set yourself a goal not to earn a lot, but to earn consistently.
You can use the Master Money Bot indicator to calculate the lot in accordance with the specified risk percentage.
Follow the news
The release of important economic data can easily turn the market in any direction. And if, when trading on daily charts, this factor is leveled by the value of the timeframe, then in intraday trading it is necessary to pay attention to the news release. I say this all the time in forex strategy reviews: do not trade half an hour before and after news releases. If you see some Price Action setup, but the news comes out in half an hour, wait. After the news is released, if the market moves in the direction indicated by the setup, you can enter the market. But not until the release of this or that news.
Watch out for a higher timeframe
Forex charts of the same currency pair can be completely different. It all depends on the timeframe, on the selected time frame.
And if you trade, for example, on H1, then it will be very useful to look at the higher timeframe – H4. But you also need to do this wisely, taking into account the stage of what is happening on the higher timeframe. For example, if you see a big uptrend on H4, but at the moment there is a correction, why not open sales on a lower H1 scale? After all, the correction may drag on, and limiting ourselves to only purchases, we will lose profitable trades.
Limit your profit/loss to 1 day
First, never set a goal for yourself: earn N points per day. This leads to a search for non-existent entry points, a feeling of anger at the market, and in the end, there are just quiet days when it is difficult to extract your N points even in theory, let alone practice …
I'm talking specifically about setting limits. A kind of total take profit and stop loss for deals within one day. It may sound silly at first glance, but this approach is very helpful in maintaining the discipline that is so important in day trading.
Here's an example: you decided that your profit/loss cap for 1 day would be 70 pips. And as soon as your total profit on transactions for 1 day reaches 70 points, you close the platform and forget about the market until the next day. The same is with losses: as soon as the amount of losses on transactions becomes equal to 70 points, you exit the trading terminal and do not return until tomorrow.
This will help you avoid taking silly trades when you are driven by the desire to win back and when you are overwhelmed by the euphoria of a series of successful positions.