Performing a day trading strategy can be defined as sitting in front of a trading screen for a continuous period and making trades that should substantially close the moment the trader closes the computer and is finished for the session.

A day trader might be scalping, which means doing fast trades with a very small profit target of under 10 pips or more, or they might even swing trades, trying to catch a daily move of 200 pips or more. Both can be day trades if these trades are opened and closed in one session.

Creating a good day trading strategy is quite simple, just use any trading strategy that works on higher time frames such as daily time frames and use shorter time frames to take signaled entries.

For example, one trading strategy that has a good track record over the years is to trade a 50-day breakout on the EUR / USD and USD / JPY currency pairs. You can also find the best forex brokers that way.

You can apply this to day trading, for example, by waiting until EUR / USD ends the New York session at a 50-day high, which then opens the trading session the next day and can look for long trades.

Doing a Day Trading Strategy Has Positive and Negative Sides

First of all, decide what time you will be trading. You need to be in a quiet and lonely place where you will not be disturbed and where you will feel comfortable. When performing a day trading strategy, being able to enter and exit trades quickly is very important, so you don't want any external problems or disruptions.

Before you start trading, you should check the economic calendar to see if there will be any high-impact data releases regarding the currencies you will be trading. Keep in mind that when you look at the stop loss it may be no more than 10 to 40 pips.

Unexpected economic data can turn a good trade into a losing trade in a split second. Is there any point in getting so close to a random stop loss to the point where trading becomes a gamble? Probably not, so get out of trades that are close to your stop loss before the release of the relevant news.

If one pair has been more active and purposeful than the other lately then this is what to focus on, especially if there is high impact news scheduled for one or ideally both sides of the pair. So, you have to keep track of when doing a day trading strategy.

Not All Traders Can Take Day Trading Steps

Second, depending on the time you are trading, it's a good idea to place lines on the chart marking the highs and lows of the previous session, especially those that stand out as inflection points. Some traders also like to mark open sessions, but I believe they are much less important.

Before you start trading, you should look at long-term charts and mark the main trend lines and support and resistance levels that are close to the current price. You can learn to become a professional trader by joining the Didimax forex broker.

It is not recommended for new traders to start trading in a day trading style. Forex day trading is very popular because it is attractive. After all, there can be a lot of action, and because it is easy to see all the intraday price movements and think this can turn into a lot of profit. A skilled trader might be able to do this, but it's not as easy as it seems.

New traders are better advised to start with positions and/or swing trading, which is a much easier way to withdraw money from the market, and for a while to build their trading skills. Once they have built up their competence, they can then move on to day trading strategy if they wish.