How does one day trade the forex market?

[UJE]

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]

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

 

[UJE]

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]

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 .

 

[tomorton]

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]

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)

 

[UJE]

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]

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]

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?

 

[Kevin FD]

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)

its a very nice reply from all , got some fine line with good information , thank for your nice post. appreciate

 

[NVP]

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

Have you got a spare 5-10 years to find out ?

 

[Henow1969]

It is very much necessary to have a strategy and plan to be successful in forex trading. Always learn forex before the start and test your strategy with demo trading and if it works then go for real trading.

 

[Forexintradiadarwin]

Have you got a spare 5-10 years to find out ?

That's a serious answer...which is absolutely true! However, it is still nothing guaranteed. If we were a little bit smarter we'd probably put that huge amount of hours in a PhD or something like that...but wait! Then we'd miss all the excitement...lol

 

[CavaliereVerde]

Those very few that consistently beat the market for years have a PhD
It can't be a coincidence.

 

[progix]

I would also suggest sticking to major currencies.

Agreed and much appreciated for the suggestion.

 

[hatemypips]

Agreed and much appreciated for the suggestion.

Well he just advices what works for him however I can say that trading on exotic pairs can be much more profitable as underlying factors that drive the price their number is smaller.

 

[ph_trader]

i guess a good start is demo, just do demo and get familiar with it, and look for traders to follow, vids on you tube, and just learn then consider looking for a brokekr and investing, it takes time really

 

[progix]

Obviously the demo account helps us build our skills and learning the forex processes more easily than any other method so the demo trading should be done for at least six months before moving to any live trading account.