Best forex day trading strategies

Day trading is for small profit taker for small price movement. Day trading is so populer because of getting quick result. Even within an hour you can take your profit and get out of the market which is really cool. But the main problem of this types of trading style is you need to wait till you get a perfect setup. You need to look at the chart all the time just like an eagle which may not good for health but who cares if its good for wealth!!. But unfortunately most of the day trader lose money at the end of the day. Why this happens? Well, when it comes to trading there are lots of emotion get involved. People naturally response on emotion. So, big warning–day trading may not be suitable for you. But if you have enough time and energy go ahead. Today i will share with you some proven day trading strategies.

Rules for every day trading strategy

money management:

If you are day trader or swing trader you need to manage money like proffesional trader. If you dont follow the money management rules you will not last long. At first decide how much you want to risk and calculate risk to ratio.Most proffesionals never risk more than 2% of their initial deposit. If you are a day trader i would suggest you to not risk more than 1% because you will get tons of opportunities every single hour.

Time for day trading:

I know most of the people are thinking wow that is a great opportunity to beat the market within just one hour and money will be in pocket. But this is not the way to day trade. You need to constantly monitor your chart during a particular session when you want to trade.You need to allocate your so much time for day trading.

limiting forex pair:

You need to limit yourself for charting. Dont just pick randoms chart and start monitoring. Just pick three or four chart to monitor and constantly follow those.Try to select chart with high volume.

Day trading strategies

Breakout:-

Breakout trading is most populer in the day trading world. What does breakout trading mean? Breakout means when price strongly breaks above or below a level. A level means a support or resistant or you can call it supply and demand area. After strongly breaking a trader can decide to go with the direction of breakout.To trade succesfully, you need to identify a strong support resistant or supply demand area.

entry:When the price breaks above or below the support or resistant and closes candles body you can enter into a trade with further price confirmation.

Exit: You will exit the position when the market is near another support or resistant level.

Trading reversals

some peole say that reversal trading is so much dangerous. But i know a lot of proffesional who are making a killing with just reversal trading. At first you need a strategy to trade. without a solid strategy everything will be dangerous.

entry:You need to identify key market support and resistant level first. Then wait for the market to come near this level. You have to check the price behavior when it touches the level. You should always ask this question – how strongly price has come and touched this level.If this heavvy strong dont take the trade because it shows the aggresiveness of the market, It has a better chance to breakout. After touching the level you need to look for a candlestick pattern formation to confirm your entry. If you dont know about candlestick patterns. I have a blog post about candlestick pattern.check it out.

Exit:Exit rules remain the same for all types of strategy.Always look for future support or resistant area to exit your position. Because , price has a great chance to bounce back from those areas. I hope you will apply those best day trading strategies . Happy trading..