What is day trading?
Simply its a short-term forex trading strategy, and day trading strategy is one of the most popular trading strategies for retail traders. Traders set up several forex trades in a day and close them at the end of the trading day. Thats why we are calling its day trading. A huge number of traders are trading by following the strategy, and we are calling them day traders who are using this strategy. Traders are using it as a quick way to earn the best profits from their trades. But, its not easy for all traders. This strategy is suitable for those traders who can analyze the market properly. To earn profits from the day trading strategies, you have to monitor the trading charts throughout the day. Here we are going to discuss the strategy.
Forex day trading strategies
Mainly, there are four types of day trading strategies followed by traders: Forex news trading, Momentum trading, Trend trading, and Identifying breakouts. These trading strategies are followed by the most successful forex retail traders completely different from each other.
How to do forex day trading
First of all, you have to open a live forex trading account with any forex broker.
After completing the registration procedure, you have to select your trading product between CFD and spread betting.
Start the market analysis, you can get help from the internet. There are a lot of websites publishing market analyses with different criteria.
Keep learning and grow your technical analysis by studying price charts.
The most important part is risk-managements. You have to use tools like stop-loss orders to protect your capital. Because the forex market is moving randomly, and it's risky for traders. You have to learn to protect your capital.
Day trading indicator tool
There are a lot of forex trading tools available for traders. If you are looking for day trading, you have to learn to use some technical indicator. Because without these indicator tools, your day trading strategy could fail, and you will lose your capital. Most of the expert forex traders are using the following indicators for day trading.
- Stochastic oscillator.
- Bollinger Bands.
- Simple moving average (SMA).
- Relative strength index (RSI).
- Fibonacci retracements.
Note that, day trading is depending on your price and chart analysis, being a good day trader, you have to learn how to analyze the market properly. However, there are a lot of websites are publishing analysis reports you should build up your analysis skill to trade long term in the market.