Day trading strategy seems to be the most well-known active trading style, and is often considered the meaning of active trading itself.

It is a method of buying and selling an instrument within the same day. Transaction positions are closed on the same day as when an open sell or buy is made.

Traditionally, day trading strategy was carried out by professional traders, such as specialists or market makers. However, the rapidly developing online trading system has also opened up opportunities for novice traders to do so.

Day trader is a term for someone who makes transactions in a day trading style. For example buying in the first session and then selling in the second or third session in one day.

This trading style takes advantage of daily price fluctuations. The range is from a few minutes to hours per trade. This type of trader is speculative and aims to seek capital gains.

Due to high liquidity and the use of leverage, forex trading is suitable for day trading strategy where you can take advantage of price movements even with simple account sizes such as micro and mini.

Given the currency movements during the day and the leverage used, you can make a daily profit using a good profit and loss ratio.

Advantages of Day Trading Strategy in Forex

With a good system and the best forex broker, you don't have to be glued to the screen, because you can use the automated features built into the chart.

The trading time frame which usually ranges from 2-4 hours allows you to use a low time frame as a reference for trading charts.

Forex day traders usually use the 4H or 1H time frame as a determinant of the long term trend. As for daily execution, they prefer to use a 15M time frame.

Due to the short time frame and trading time, their profit target is not too big, which is no more than 100 points.

The most common targets are usually between 30-50 points. Because the profit target is not too large, they can open positions several times in one day.

When trading with the day trader pattern there are many opportunities that can be taken. Since the profit target being pursued is not more than 100 points, this opportunity can arise almost every day in various types of major currency pairs.

Whether the price is in an up or down wave, a day trader is able to profit from it. Day traders are not as concerned with long-term trends as a swinger.

For them trading is today. By looking at today's movement, that's the market conditions that can be taken. That's why they use relatively shorter time frames like 15M or 10M.

Disadvantages of Day Trading to Understand

Weaknesses in trading with patterns like this exist. A day trader must be strong enough to monitor price movements several times each day, otherwise they will lose the opportunity to open a position.

This has an impact on the possibility of a day trader experiencing psychological pressure due to price changes from second to second.

If you opened a real account in Didimax forex broker, you will understand what it means. On a real account, the psychological point plays a very important role far more than any pressure.

Another drawback lies in the magnitude of the risk. The more actively someone opens a position, the risk taken will also be greater.

So instead of making a profit, a day trader who is not good at reading charts often loses quite a large amount in a short time.

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. Day trading strategy will only work if you are disciplined in trading.