The purpose of this website is to be a place for learning and discussion. The website and each tutorial topics do not encourage anyone to participate in trading or investment of any kind.
Any information shown in any part of this website do not promise any movement, gains, or profit for any trader or non-trader.

.
« previous next »
Pages: 1

Author Topic: What is Forex Day Trading?  (Read 30 times)

ThomasRlino

  • Guest
on: December 28, 2023, 02:56:58 PM
What is Forex Day Trading?

The intraday method of starting a Forex day trade is a type of trading style where a position is held open for no more than 24 hours without being held overnight. This means there are no exchange costs. Any time frame can be used for analysis, but the most popular time frames are H1 and H4. Unlike scalping or other markets, trades are kept open for several hours - this allows you to assess the situation without emotions and haste and at the same time not to overdo it. You don't need a large deposit if you can avoid spikes in local volatility.

Daily strategies are the favorite type of trading style for beginner forex traders. Brokers have no problems with the Forex day trading strategy, which cannot be said for scalping. Price noise is partially smoothed out (no local chaotic bi-directional movements), wave patterns are noticeable. And most importantly, you don't need to make hasty decisions, but at the same time you don't need to wait long for the result.

Intraday currency trading is speculative, so the financial instruments are mostly currency pairs. SDRs on stocks and commodities are more suitable for long-term strategies, where the transaction is held in the foreign exchange market for 3-5 days. On the other hand, cryptocurrencies are an ideal instrument for intraday trading: scalping with them is not profitable due to the large margin, while long-term trading carries unjustified risks. And volatility of 3-5-10% per day bodes quite well for far-sighted traders in the forex market.

There are a few unspoken rules about day trading opportunities. The first relates to opening and closing trades over the weekend. Forex day traders are skipping the first two hours of the European trading session on Monday. After the weekend, the Forex market may open with a price gap: Forex day traders are just starting their analysis and outlining their weekly plans. The early hours of Monday are the least predictable time, but after that the financial market goes back to business as usual. The same goes for Friday. Before the weekend, in the last hours, trades are closed en masse to avoid swaps and fundamental risks.

The second rule is to consider the volatility of the instrument in a given session. With the H4 time frame, it is likely that the open trade overlaps with the second session, where forex trading volumes can be completely different. During the Asian session, attention should be paid to JPY, during the European session - to European currencies for trading.


Pages: 1
« previous next »
 

+ Quick Reply

Related Topics



-

Discussion Forum / 论坛 / منتدى للنقاش/ Diễn đàn thảo luận/

-
Disclaimer : The purpose of this website is to be a place for learning and discussion. The website and each tutorial topics do not encourage anyone to participate in trading or investment of any kind. Any information shown in any part of this website do not promise any movement, gains, or profit for any trader or non-trader.

By viewing any material or using the information within this site, you agree that it is general educational material whether it is about learning trading online or not and you will not hold anybody responsible for loss or damages resulting from the content provided here. It doesn't matter if this website contain a materials related to any trading. Investing in financial product is subject to market risk. Financial products, such as stock, forex, commodity, and cryptocurrency, are known to be very speculative and any investment or something related in them should done carefully, desirably with a good personal risk management.

Prices movement in the past and past performance of certain traders are by no means an assurance of future performance or any stock, forex, commodity, or cryptocurrency market movement. This website is for informative and discussion purpose in this website only. Whether newbie in trading, part-time traders, or full time traders. No one here can makes no warranties or guarantees in respect of the content, whether it is about the trading or not. Discussion content reflects the views of individual people only. The website bears no responsibility for the accuracy of forum member’s comments whether about learning forex online or not and will bear no responsibility or legal liability for discussion postings.

Any tutorial, opinions and comments presented on this website do not represent the opinions on who should buy, sell or hold particular investments, stock, forex currency pairs, commodity, or any products or courses. Everyone should conduct their own independent research before making any decision.

The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. You should obtain individual trading advice based on your own particular circumstances before making an investment decision on the basis of information about trading and other matter on this website.

As a user, you should agree, through acceptance of these terms and conditions, that you should not use this forum to post any content which is abusive, vulgar, hateful, and harassing to any traders and non-traders.