Forex intraday strategies are used by traders quite often, since not everyone is attracted to scalping or long-term trading - for many, intraday trading is more relevant, providing the ability to close deals within one day and see the result.
Intraday trading is called that is carried out during one trading day. Given the small-time intervals, such trading can be quite risky, as market noise with a large amplitude can affect open positions. But many experienced traders advise beginners to start with just such an option, since it makes it possible to track price movements, learn to restrain emotions, make the right decisions.
Intraday trading is considered the most profitable. This trading style is the most popular among novice traders due to the ability to use small deposits in their work and get good income at the same time. Forex intraday strategies involve the conclusion of short-term transactions that remain open for a maximum of several hours and must be closed before the end of the trading session. To increase profits and minimize losses, it is advisable to choose the best Forex strategies, having previously reviewed their descriptions and reviews.
Intraday trading is a rather labor-intensive activity; the result of the work depends on market noise. Often, even when a trader determines the correct future direction of the price of a currency pair, due to a small stop signal, market fluctuations can simply “knock them out”, and the price will continue to trend movement. Therefore, in order to ensure a stable income, the trader should pay more serious attention not to fundamental, but to graphical analysis.
The main advantage of using intraday strategies is the ability to repeatedly enter the market during one trading session. The trader can make maximum use of the price movement, he can open an unlimited number of transactions. Effective Forex strategies for intraday trading can bring good income, but only if the trader remembers the rules of money management.
Forex money management rules assume risk accounting and the correct distribution of funds. The trader must initially determine the maximum amount that he is ready to lose in one transaction. It is advisable that this amount be no more than 2-7% of the total deposit amount. In this case, even after a series of losing trades, the trader will have the funds to continue trading after he corrects the errors and develops a new system.
Of the shortcomings of this method of work, it is worth noting the emotional component. Given the short duration of transactions, the trader can not relax for a minute, he is constantly in tension, monitors the minimum market fluctuations, indicators of technical analysis tools. Signals for concluding deals should be analyzed instantly, a decision must be made quickly, so the trader should always be calm and reasonable, not give in to emotions, not be afraid to lose a couple of profit points excessively, but not be greedy.
Many experienced traders consider the trend trading method to be the safest. Prior to opening a transaction, the trader analyzes the direction of the trend at any large time interval. It is best to open deals at the end of the correction, but not vice versa. If even before the start of price trading, the path was followed by a trend of more than 50 points, it is dangerous to open a new position, since there is a high probability of a rollback, after which the correction will begin.
With the right choice and careful planning, intraday forex strategies can generate good returns and provide a relatively high level of stability.
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