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The advantages of day trading: short time, small risk, quick profit, more suitable for Forex beginners. Let's take a look at the detailed day trading strategy.
01 Choose the currency pair
1. Entry time
Traders who do not understand risk control have not even stepped into the door of trading. Stop loss orders should be set immediately after entering the market. If you do the opposite, the stop loss order will automatically take you out to avoid greater losses.
4. Exit mechanism
The profit model of day trading is to use multiple small profits to achieve the purpose of accumulating wealth. The profit is twice the stop loss, and the position should be closed decisively as soon as there is a sign of a pause in the trend. Remember one thing, close the position when there is profit!
04 Preparation after opening
1. Determine whether today's market is unilateral or oscillating
Prices fluctuate up and down in the area between the highest and lowest prices in 30 minutes on the 3-minute chart, which is oscillating. A breakthrough may lead to a trend.
2. Determine the mid-line trend
If the trend on the 60-minute chart is rising, try to start with the long side; otherwise, start with the short side.
3. Find key points
Draw the pressure, support, trend line and Fibonacci retracement line in the chart, and take quick action when the price reaches or breaks through these key points.
05 Intraday trading profit skills
1. Choose only one currency pair to trade
Traders should preferably only operate one currency pair during a certain period of time and track it continuously. When operating, at least three market windows with different time periods should be opened: 1 minute, 3 minutes, 30 minutes or 60 minutes.
2. Evaluate profits and stop losses
When ambushing the target currency pair, the possible winning and losing sides must be quickly evaluated in advance and during execution. Only trade when the probability of winning is greater than 80% and the stop loss and profit target are at least 1:2.
3. Notes
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01 Choose the currency pair
- Not all currency pairs are suitable for day trading.
- Currency pairs with high volatility and high liquidity can allow traders to make profits quickly.
- To make money quickly in day trading, you must choose active currency pairs.
- 1-minute chart: suitable for traders with high energy and strong psychological endurance.
- 3-minute chart: suitable for traders who do not want to trade too frequently.
- 15-minute chart: suitable for traders who do not want to stay overnight and only need to make one or two transactions a day.
1. Entry time
- Model reference: no operation within half an hour after opening; long when the price breaks through the highest price in half an hour, short when the price falls below the lowest price in half an hour.
- Other conditions: Do not go long if the price jumps up, do not go short if the price jumps down; go short if the price jumps up and falls below yesterday's highest price, and go long if the price breaks yesterday's lowest price.
- Day trading also requires fund management, and the fund management principles cannot be the same for different currency pairs.
- It is recommended that a single loss does not exceed 2% of the total funds. Maintain a 2:1 risk-return ratio, so that even if only one of three transactions is correct, you can break even.
- If the correct rate reaches 50%, you can make money.
Traders who do not understand risk control have not even stepped into the door of trading. Stop loss orders should be set immediately after entering the market. If you do the opposite, the stop loss order will automatically take you out to avoid greater losses.
4. Exit mechanism
The profit model of day trading is to use multiple small profits to achieve the purpose of accumulating wealth. The profit is twice the stop loss, and the position should be closed decisively as soon as there is a sign of a pause in the trend. Remember one thing, close the position when there is profit!
04 Preparation after opening
1. Determine whether today's market is unilateral or oscillating
Prices fluctuate up and down in the area between the highest and lowest prices in 30 minutes on the 3-minute chart, which is oscillating. A breakthrough may lead to a trend.
2. Determine the mid-line trend
If the trend on the 60-minute chart is rising, try to start with the long side; otherwise, start with the short side.
3. Find key points
Draw the pressure, support, trend line and Fibonacci retracement line in the chart, and take quick action when the price reaches or breaks through these key points.
05 Intraday trading profit skills
1. Choose only one currency pair to trade
Traders should preferably only operate one currency pair during a certain period of time and track it continuously. When operating, at least three market windows with different time periods should be opened: 1 minute, 3 minutes, 30 minutes or 60 minutes.
2. Evaluate profits and stop losses
When ambushing the target currency pair, the possible winning and losing sides must be quickly evaluated in advance and during execution. Only trade when the probability of winning is greater than 80% and the stop loss and profit target are at least 1:2.
3. Notes
- Pay attention to the operation of support, resistance, trend lines and Fibonacci retracement lines on different period charts.
- Pay attention to the comprehensive determination of position patterns on the daily chart.
- Pay attention to the health and stability of the waves on the time-sharing chart.
- Pay attention to the shape of the K-line entity and the changes in volume.
- Keep a calm mind, leave the market when the stop loss is touched, and leave when the profit target is reached.
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