3 Forex Day Trading Tricks Recommended by Forex Academy That You Should Remember
Why is Forex day trading beneficial? The simple answer is you get more trades during the day than at night. This gives you a better chance to earn more money through successful trades. Moreover, day trading helps to get faster feedback about marketing conditions. The more you trade during the day, the easier it becomes to understand which strategy is working. The faster you learn, the more money you can make at the end of the day.
photo/ Gerd Altmann
Forex day trading strategies
When you see numerous price action contexts, structures, and candles, you have more data to work with to develop trading strategies. Forex Academy is like an institution for many, considering that it provides the latest updates about day trading strategies. It also explains the functions of Japanese candles and price action context in detail. Forex Academy comprehensively teaches the different functions of these trading indicators. The more you learn about these indicators, the better you will be able to judge the market conditions.
Once you understand how the market works, you can develop a few day trading strategies. If you don’t know any tricks, follow the ones given below:
Minimum risk vs. reward in hand
According to trading experts on Forex Academy, day trading works best when you have a 1:1 ratio. This increases the chances of earning more. Some traders make almost 300% of what they invest. On the other hand, traders with a negative risk: reward ratio approach is hardly successful. You may make money out of it, but it’s not as much as the others following 1:1 technique. In fact, this strategy works for all types of traders and in all time frames. So, you should make the most of the trades during the day to understand the trend.
Don’t use too many trading instruments
As a newbie Forex trader, you may have an urge to use various instruments while trading. Remember, day trading is sensitive. Every analysis, calculation, and decision should be made as quickly as possible. This will not only improve your working memory but also boost your cognitive load. Ideally, you should have a major pair, a minor pair, and a few essential volatile stock or precious metal, depending on whether you are trading stocks or commodities. You don’t need to have your hands full of trading instruments.
Maintain a maximum risk profile
It is easy to get carried away when you have consecutive favorable trades. This can easily lead to overtrading. That’s when you will need the help of a maximum risk profile to keep you in control. Since day trading can help make more money, you may not know when to stop. A maximum risk profile will create a capping on the maximum amount of money you can trade in a day. Some traders prefer having a monthly risk profile. A robust risk profile will enable you to have more trading amounts regularly.
There are many more strategies that you can learn from Forex Academy as you start trading. But make the above your thumb rules for day trading if you don’t want to incur a significant amount of loss.
Author: Matthew Perry
