People dealing with or trying to get into Forex always hear about day trading without knowing what it really is. However, it is a very simple concept. Day trading is all about finishing a Forex trade within a single day.
To get better at this type of trade, newbies need to learn more about Forex day trade strategies that might help them get better.
Since most day traders look for short-term profits, Forex day traders strategy timelines rely on the volatility of the market. Here is a brief introduction and explanation to some of the most profitable plans you can use for day trading.
Strategy 1 – Momentum
Basically momentum trading is based on announcements made by countries. Economic announcements like Gross Domestic Product, Budget, or Reforms often have a huge impact on the foreign exchange market.
It is during this time that many traders try and bank upon the instability and make huge capital investments on higher leverage for more profits. Using automated traders with expert advisers can be of great help during this type of quick trade.
Also, most momentum trades last for anywhere between 1 to 15 minutes depending on the market.
Strategy 2 – Fading
This is one of the more complicated Forex day trading strategies which involve shorting trades once you make unexpected profits. Shorting is betting on down trade after huge uptrends. Although it is a risky maneuver, it can be very rewarding if successful.
Even many pro traders rely on this among other Forex strategies for day trading.
Strategy 3 – Scalping
One of the common Forex day trade strategies; this is a classic that never goes out of style. Traders who scalp look to make short and quick profits by buying and selling immediately after they reach their target.
In case of rapid downfall, traders make quick exits to lessen losses and make sure they remain profitable. Considered the best daily trade Forex system by many pro traders, it works very well for beginners too.
Strategy 4 – Pivoting
As simple as pivoting may sound, many trading forums consider it the best Forex day trading system. Traders pivot when they make buys during daily low trends and sell during the daily high.
If one follows price action of a currency pair on a weekly timeline, calculating these trends become very easy.
Experts feel that pivoting is the best daily Forex system for beginners with very little understanding of other factors in the foreign exchange market.
Strategy 5 - Auto trader strategy
Automated traders work efficiently for people with little to no understanding of the market. If someone wants to get into trading instantly, using an online Forex platform like Meta Trader 4 or 5 with their automated trade software is one of the ideal Forex day trade strategies.
It helps them manage stop loss and take profit parameters in the volatile day trade market. This way it hedges their chances of making losses and lets them get out with profits whenever they find fit.
After analyzing all of these day trade strategies, you might get into Forex day trade and learn to make profits for an extra income source.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.