skrimon
Active Member
Greetings to all.
Intraday forex trading is a challenging topic that we'll be discussing today. Any intraday trader can benefit from the advice provided below.
Don't chase the number of trades. Select the most obvious setups.
A chart is now shown in your browser. Nothing is being set up. You narrow the focus, switch time frames, and enter for market entry signals. What you're describing, do you recognize it? Following the common belief that "intraday trading is a lot of deals, virtually every minute," you're eager to initiate a trade, and perhaps more. This, however, is not system-based trading but rather purely random trading. To what does it lead, if anything? Probably already figured that out. Enter sure you're entering a pristine, textbook scenario before you step inside. Enter sure you're only getting into the market at obvious entry points. Don't worry about things that aren't clear. Hold off on entering until you see the green light.
Limit the Number of Traded Instruments
Trading intraday needs decisive and prompt action. There is not enough time for deep consideration. Having too many options for trading pairs is likely to cause you unnecessary number and anxiety. When trading intraday, you don't require 20 charts, and your portfolio should only have a maximum of three instruments. I suggest starting with no more than one currency pair.
Risk no more than 1% of your deposit in each trade
When trading intraday, you're under a lot of mental pressure. It's easy to let your frustration build after a string of losses, leading you to make even more careless trades as you try to claw your way back to profitability. Because we open trades relatively frequently during the day, there is just no time to calm down, examine the situation rationally and without emotions, and risk 5-10% of deposit on each trade.
That being said, you should only risk a tiny percentage of your total funds. That even if you suffer a series of losses, you will be able to maintain your composure and keep trading, with the hope of eventually recouping those losses and more. Focus on consistency over immediate financial gain.
Monitor the news
The market's direction can be quickly reversed when significant economic data is released. While trading on daily charts eliminates the impact of news events, intraday trading necessitates paying close attention to them. During the 30 minutes leading up to and following the announcement, trading is suspended. Wait if you notice a Price Action setup, but the news comes out half an hour later. If the market reacts to the news in the way predicted by the setup, you can enter a market after the announcement. Not until the press release, though.
Watch the higher timeframe
Identical currency pair Forex charts can look very different. Depending on the time period that is being considered. As an example, if you trade on the 1-hour timeframe, it would benefit you to also monitor the 4-hour timeframe. But we need to proceed with caution, keeping the event's higher-level timeframe context in mind.
Limit your profits/losses for 1 day
First, you should never challenge yourself by saying, "I want to make N points today." This leads to frustration as you search for entry points that don't enter, anger at the market, and ultimately, quiet trade days when it's difficult to extract your N pips even in theory. What I mean is, in particular, establishing boundaries. The equivalent of a stop-loss order for trades made within a single day. While this strategy may appear absurd at first, it actually aids much in preserving the discipline necessary for successful intraday trading.
Consider the daily volatility of the traded pair
We'll presume you're familiar with the fact that 100 pips is the typical range from the day's high to low in the candlestick chart for currency pair X. During intraday trading, if you have made 70-80 pips on a trade, it is prudent to close the position because more profit is unlikely. For similar reasons, it would be foolish to enter a fresh trade if the price has already moved 70 pips in the trend before a new pattern forms in the same direction.
Do not leave the position for the next day
Inexperienced workers make a big mistake by not filling open positions the night before. Why should the intraday setup you observed hold true for the next day? It's been so long since the market even cares. Many additional pieces of information and signals have become available to the traders, and new positions have been opened on higher timeframes, etc. If that's the case, then why do you think your argument will prevail?
Playing roulette by leaving available positions unfilled overnight is a gamble. To top it all off, Forex is not a place for luck. If you still have open positions at the end of the American session, you should close them immediately to avoid incurring any further losses.
Please use the comments box to ask me whatever you'd like.
A like would be greatly appreciated.
