As an Online Forex Day Trader, we try to make quick profits by exploiting minute price movements in the currency exchange market, normally we leveraging large amounts of capital to do so. We need to find:
Liquidity allows you to enter and exit a currency pair at a good price, tight spreads, and low slippage.
Best day trading session:
Volatility is simply a measure of the expected daily price range—the range in which a day trader operates. More volatility means greater profit or loss.
London Open is normally the volume start to pick up. Forex market is open 24/5, however, most day traders only start their session from London Open.
Best trading tool:
You need to build your trading system to identify entry points—at what precise moment you're going to click buy or sell. Tools that can help you do this include:
Real-time news services: News moves currency pairs, so it's important to subscribe to services that tell you when potentially market-moving news comes out.
ECN quotes: Electronic Communication Networks, are computer-based systems that display the best available bid and ask quotes from multiple market participants and then automatically match and execute orders.
Best trading system:
This may sound easy, but most newbies failed to stick to the plan.
You need measurement to define the conditions which you'll enter a position.
"Buy during uptrend" is not specific. You’ll need indicators, for example, Buy when price breaks above the moving average.
Once you have your system building up, pick a set of trading pairs with good volatility and market depth—most people will never mention this. Scan all these pairs if those conditions are generated each day.
Let’s build a unique strategy that suits yourself in the next post.
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*Risk Disclaimer: Forex trading carries high risk. Past performance is not necessarily indicative of future results.