The intraday trading in Forex
In this article, we will talk about the separate type of trading in the world market, or more specifically, about the intraday trading. Already from the name, it is understandable, that the deals, which have been opened in the process of such trading, are short-term ones. They last in average from a couple of seconds to several hours. That’s why, they are opened and closed within only one day.
What is trading on the daily timeframe?
The intraday trading – is one of the most popular types of trading, which is suitable both for novice traders and for professionals in this field. For beginners, such trading is an excellent start, because, without knowing some trading strategies, it is easier to forecast and open short-term deals, where you can make quick money and your losses will be invisible, then the long ones. This is a good way to learn, how to trade. However, professional traders also build some of their strategies on opening a few short orders to minimize their risks and to make a 100% profit.
The greatest advantage of this type of trading is, the thing, that you don’t need to have a large amount of money on your account. That is because, you will for sure divide and break up lots and open short-termed trades, so you don’t need much money. You will be gradually increasing your deposit.
Remember, that for the intraday trading, you also need to conduct a great technical analysis. Such orders can’t be opened unreasonably, even though, they are short. You will need to have enough time for the development of the analysis.
The intraday trading strategies
There are absolutely different strategies for the one day timeframes in Forex. You can choose any financial instrument or groups of instruments for such type of trading.
There are several universal tips for developing your own strategies in the intraday trading:
• Do not think, that the more transactions you open, the better. Choose among them, those which have the highest percentage of probability and focus your work fully on them.
• Select several financial instruments for trading. That’s because, you still have to conduct the deep analysis of the price changes for the selected tools, you need to decide on those, with which your trading will be more comfortable.
• Each transaction, that you are opening during the intraday trading, must have no more, than 1% of the risk of loss. Exactly for this you need an analysis. Without it, your risks will be much higher, and the profit, as you understand, will be much lower.
• You must constantly overview the current news, as they are in the heart of the fundamental analysis and they give you the forecasts of the growth or fall of prices of certain instruments.
• Perhaps, the main advice will be: don’t open the short-term deals at the end of the day. That’s why, your money will be in safety from swaps and the unwanted reversals at the opening of the market.
Following all of the tips mentioned above, your intraday trading will bring you the maximum profit in a short period of time.