How does one day trade the forex market?

UJE

Newbie
9 2
Hi everyone, approaching the end of the week so I thought I should bring up a vital topic that has spurned interest and attraction from newbie to experienced traders, which is, "HOW DO I DAY TRADE THE FX MARKETS PROFITABLY?".

HOW DO I DAY TRADE THE FOREX MARKET .
1. Which timeframe is more liquid, volatile and should be advised to be used for day trading in the fx markets?
2. Which currency pairs should be traded and as well which currency pairs should also be avoided?
3. What type of trading strategy works best in the FX market for day trading - Moving Averages, Support and Resistance, Candlestick Patterns, etc.

And please if you also have more to add to the list, I will be grateful. Thank You
 

MichaelJohnFX

Senior member
2,816 314
All the answers to the questions above are really going to vary depending on the traders you speak to. Some traders can go weeks without trading, others trade daily. You've just got to find a system / strategy that works for you - takes trial and error to be honest. Regarding what pairs to trade, just stick to the majors/minors (USD, JPY,GBP,EUR,CAD,NZD). Avoid stuff like TRY lol. Hope that helped
 
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UJE

Newbie
9 2
All the answers to the questions above are really going to vary depending on the traders you speak to. Some traders can go weeks without trading, others trade daily. You've just got to find a system / strategy that works for you - takes trial and error to be honest. Regarding what pairs to trade, just stick to the majors/minors (USD, JPY,GBP,EUR,CAD,NZD). Avoid stuff like TRY lol. Hope that helped
Thanks @MichaelJohnFX it really did helped. So what do you say about the time sessions do you advise for a trader who opens and close positions within a day?
 

wmram

Junior member
25 11
Focus your attention on identifying conditions wherein you believe that price will likely go here before it goes there and put on the trade. Don't mean to be flippant about it, but that really is what it comes down to. Put whatever lines you want on the chart; they're just there to help create a narrative for yourself. That's not a bad thing; after all we're just trying to answer a simple question about trading - where and when. If lines on a chart helps, use it.
Timeframe - open each currency pair start on daily timeframe and work your way down to one minute chart. Just look at the type of price movement you're likely to see, and decide for yourself what looks more readily tradable .
 
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tomorton

Legendary member
8,177 1,240
You're getting some good advice together. Open a demo account and start trying out some simple ideas.

Start with the 1-hour time-frame, within the London business day only. Start tracking one major pair only. You might hold onto profitable positions into the New York afternoon session but it might be a time period you would avoid opening new day-trades. Always use a stop-loss and always make sure the capital risked is 1% or less of your account capital. Don't buy if price is falling, don't sell if price is rising. Make a note of what time the highs and lows and reversals occur within this time period, how long trends last, whether they are parallel to the daily trends etc.

You don't need many many strategies which are complicated.
 

MichaelJohnFX

Senior member
2,816 314
Thanks @MichaelJohnFX it really did helped. So what do you say about the time sessions do you advise for a trader who opens and close positions within a day?
Relevant market openings (Asia, London and New York). Close positions (New York). I always see Asia as the start of the new FX day. Assuming you want to day trade...but if i'm being honest, you have to be flexible. For example, my average hold time for winners is 3.5 days. For my losers it's 6 hours (barely a day). Let your winners run as long as you need them to (or define a profit target - swing high and lows are always good imo)
 
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UJE

Newbie
9 2
Focus your attention on identifying conditions wherein you believe that price will likely go here before it goes there and put on the trade. Don't mean to be flippant about it, but that really is what it comes down to. Put whatever lines you want on the chart; they're just there to help create a narrative for yourself. That's not a bad thing; after all we're just trying to answer a simple question about trading - where and when. If lines on a chart helps, use it.
Timeframe - open each currency pair start on daily timeframe and work your way down to one minute chart. Just look at the type of price movement you're likely to see, and decide for yourself what looks more readily tradable .
thanks
 

UJE

Newbie
9 2
You're getting some good advice together. Open a demo account and start trying out some simple ideas.

Start with the 1-hour time-frame, within the London business day only. Start tracking one major pair only. You might hold onto profitable positions into the New York afternoon session but it might be a time period you would avoid opening new day-trades. Always use a stop-loss and always make sure the capital risked is 1% or less of your account capital. Don't buy if price is falling, don't sell if price is rising. Make a note of what time the highs and lows and reversals occur within this time period, how long trends last, whether they are parallel to the daily trends etc.

You don't need many many strategies which are complicated.
ok. I appreciate
 

UJE

Newbie
9 2
Relevant market openings (Asia, London and New York). Close positions (New York). I always see Asia as the start of the new FX day. Assuming you want to day trade...but if i'm being honest, you have to be flexible. For example, my average hold time for winners is 3.5 days. For my losers it's 6 hours (barely a day). Let your winners run as long as you need them to (or define a profit target - swing high and lows are always good imo)
Thanks once again. But I do think holding a trade whether it is profitable or not, for more than a trade, in your case it's extreme, is no longer day trading. What is your thought?
 
 
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