Many novice traders are curious about the day trading strategy. As is well known, strategy plays an important role in forex trading. In forex, you will get to know many strategies that can be practiced.

However, this one strategy is one of the most popular strategies among traders. But is this strategy that good? Does it give you profits? Therefore, it is very important for you to understand this strategy.

A day trader takes advantage of volatility to make several transactions in one day. The duration of each of these transactions is very short, ranging from a few minutes to hours. 

In addition, traders who uses the day trading strategy or day traders also do not like to let their open positions stay until tomorrow. The purpose of these short transactions is to collect profit bit by bit, which gradually becomes a hill.

To achieve this goal, day traders will look at the long-term trend first before starting to trade. This long-term trend is usually in the 1H (1 hour) to 4H (4 hours) time frame. 

After analyzing the direction of the trend, then day traders enter the market and open positions according to the current trend with a shorter time frame, usually around 10M (10 minutes) or 15M (15 minutes). 

This trend following strategy is also known as Trend Trading. Not all day traders will follow the direction of the trend. There are also day traders who choose to open positions against the trend. 

The goal is to enter positions as early as possible when the trend changes direction. This strategy is called Countertrend Trading. Similar to trend trading, countertrend trading can also be executed in short 10-15M time frames.

Advantages and Disadvantages of Day Trading Strategy

Being a day trader, your trading time frame is always short. You don't need to be too ambitious to chase high profits, because the principle of day trading is to get a small amount of profit consistently. 

You can get this profit opportunity from trading major or cross currencies, stock indices, and commodities such as gold, silver, and crude oil which are quite volatile. On the other hand, day traders will have difficulty if they do not have enough time to observe price movements. 

In a day, day traders have to check price movements and fundamental news several times. Otherwise, the moment to open and close positions will be missed. So, make sure you have enough time to run a day trading strategy.

Risk Management In Day Trading

Just like any other trading strategy, day trading also requires good risk management. Because the number of transactions tends to be more, it is recommended to set a stop-loss limit at the level of 1-2% for each transaction. Don't forget to review all your transactions every week or once a month, OK?

Keep in mind that day trading is also influenced by global economic events, such as announcements from the Fed (Central Bank of America), updates on the number of unemployed, economic growth data, or even presidential speeches.

You can learn all about day trading with the best forex broker. Usually, a trusted broker will provide free education for traders.

One of the brokers that you can trust to learn trading is Didimax forex broker. You will be able to enjoy free educational services and be able to try trading using a demo account.

You can't be a professional trader overnight. You need a lot of study and practice to be able to understand forex. Your transactions will not always be profitable, but it is not impossible to be able to profit from forex especially if you can master the day trading strategy.