In any financial market, there’s nothing quite satisfying as regular profits. Making profits on a regular basis is what people chase. It may not be high amounts. But the confidence a trader gets is amazing. Just imagine making profits every day. That will be the real vindication of any strategy. It will justify your trading activity or your trading career. Now the question is how one makes Forex trading daily profits. It is not easy. In fact, without the right strategy, it’s impossible.
Strategies to ensure Forex trading daily profits:
There are strategies which allow you to make regular profits. Of course, the amounts are not huge. But they are substantial enough to make trading a driving force. All one needs is the right setup. With the proper settings, any trader can make daily profits. But one has to be thorough with the settings and the timings too. Or else it will not work to its optimum levels.
The settings you need:
Now, these are the settings that make this strategy work so well.
• Firstly, you need to be exact with the timing. This setup needs traders to be trading on certain sessions. That is, you need to employ this during trading sessions in London and the US. Without that making Forex day trading profits is difficult.
• Secondly, timeframes need to be exact. This strategy works well with three basic time frames. First is the very short 1 minute period. And then it also works with 5 minute period and 15 minute period.
• Also, currency selection has to be exact. One can’t go for currencies that have wide spreads. You need low spread pairs. As a result, stable currencies are your best bet.
Therefore the best pairs would be the EUR/USD or may be GBP/USD or USD/CHF.
Now once this setup is ready, you need to look at your charts. Here buying and selling signals are fairly easy. For buying:
• You first wait for an uptrend.
• Once you have an uptrend, the histogram will show you an up arrow.
• This is when you open buy trade.
• Look for a support level and place a stop loss order a few pips below it.
• See for a risk to reward ratio. Once it is 1:2, that is when you take your profits.
Even selling is quite easy and similar. For selling:
• You wait for the downtrend here.
• After that, you look for the down arrow.
• Once you have that, open the sell signal.
• Place stop loss orders 2-3 pips above recent resistance.
• Finally, sell when the risk to reward ratio is at 1:2.
This is how you make Forex trading daily profits.
So you see, even simple strategies work well. All you need to do is follow the setup very diligently. Once you do that it’s uphill from there. And make sure you never change the setup. Or else it may not work. So don’t wait anymore. Get the setup done and make Forex trading daily profits.
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.