Greetings everyone.
Today we are going to talk about such a difficult topic as intraday forex trading. The tips below will be helpful to any intraday traders.
🔷 Don't chase the number of trades. Select the most obvious setups.
You have opened a chart. There are no setups. You zoom in the picture, change the timeframes, looking for some reason to enter the market. Does this situation sound familiar? The fact that you, following the stereotype "intraday trading is a lot of deals, almost every minute", really want to open a trade, and then some more. Only this is not trading based on the system, but trading at random. What does it lead to? I think you've guessed it. Enter only when you see a clear, text book setup. Enter the market only when you see clear setups. Ignore confusing, unclear situations. Just wait for clear entry signals.
🔷 Limit the Number of Traded Instruments
Intraday trading requires quick and clear actions. There is no time for long thinking. So, a large number of trading pairs will only confuse and distract you. You don't need 20 charts when trading intraday; limit your portfolio to two or three instruments, no more. In the beginning, I would advise to trade no more than one pair.
🔷 Risk no more than 1% of your deposit in each trade
The psychological pressure is very high when trading intraday. It is very easy to get enraged by a couple of losing trades and start making more and more mistakes trying to win back. It is very hard to stay calm, risking 5-10% of deposit in every trade, because we open trades quite often during the day, and there is just no time to calm down, to assess the situation thoughtfully and without emotions.
So, the best variant is to risk only a small part of your capital. That in case of a string of losses you will stay morally steady and be able to continue trading in order to recover these losses later. Try to aim not to earn much at first, but to earn steadily.
🔷 Monitor the news
The release of important economic data can easily turn the market in either direction. And while this factor is neutralized by the timeframe size when trading on daily charts, in intraday trading you have to pay attention to news releases. Do not trade half an hour before and after the news release. If you see some kind of Price Action setup, but half an hour later the news comes out just wait. After the news release, if the market moves in the direction indicated by the setup, you can enter the market. But not before the news release.
🔷 Watch the higher timeframe
Forex charts of the same currency pair can be completely different. It all depends on the timeframe, on the selected timeframe. And if you trade, for example, on H1, then it will be useful to look at the higher timeframe like H4. But we have to do it wisely considering the stage of the event on the higher timeframe.
🔷 Limit your profits / losses for 1 day
First, never set yourself a goal: to make N points in one day. This leads to looking for non-existent points to enter the trade, feeling angry at the market, and in the end, there are just quiet days when it's hard to extract your N pips even in theory, let alone in practice. I'm talking specifically about setting limits. A kind of total take profit and stop loss on trades within one day. It may seem silly at first sight, but this approach helps a lot in maintaining the discipline which is so important in intraday trading.
🔷 Consider the daily volatility of the traded pair
Let's assume you know that the average distance from the High point to the Low point of the daily candlestick for pair X is 100 pips. If your profit on a trade opened during intraday trading was about 70-80 pips, then it would be logical to close the position, because the potential for movement is almost exhausted. Likewise, if the price has already gone 70 pips in the trend, and a new pattern appears in the same direction, it would be quite stupid to open a new trade, because the price is about to "run out of fuel".
🔷 Do not leave the position for the next day
A serious error of beginners is to leave open positions overnight. Think about it: why should the set up that you found intraday be valid tomorrow? The market has long forgotten about it. The traders have a lot of new data, signals, someone has opened positions on higher timeframes, and so on. So why should your position hold?
By leaving open positions overnight you are simply playing roulette, trying your luck. And luck has no place in Forex. So, in order to avoid unnecessary losses, if at the end of the American session you have open positions, no matter what just close them.
Today we are going to talk about such a difficult topic as intraday forex trading. The tips below will be helpful to any intraday traders.
🔷 Don't chase the number of trades. Select the most obvious setups.
You have opened a chart. There are no setups. You zoom in the picture, change the timeframes, looking for some reason to enter the market. Does this situation sound familiar? The fact that you, following the stereotype "intraday trading is a lot of deals, almost every minute", really want to open a trade, and then some more. Only this is not trading based on the system, but trading at random. What does it lead to? I think you've guessed it. Enter only when you see a clear, text book setup. Enter the market only when you see clear setups. Ignore confusing, unclear situations. Just wait for clear entry signals.
🔷 Limit the Number of Traded Instruments
Intraday trading requires quick and clear actions. There is no time for long thinking. So, a large number of trading pairs will only confuse and distract you. You don't need 20 charts when trading intraday; limit your portfolio to two or three instruments, no more. In the beginning, I would advise to trade no more than one pair.
🔷 Risk no more than 1% of your deposit in each trade
The psychological pressure is very high when trading intraday. It is very easy to get enraged by a couple of losing trades and start making more and more mistakes trying to win back. It is very hard to stay calm, risking 5-10% of deposit in every trade, because we open trades quite often during the day, and there is just no time to calm down, to assess the situation thoughtfully and without emotions.
So, the best variant is to risk only a small part of your capital. That in case of a string of losses you will stay morally steady and be able to continue trading in order to recover these losses later. Try to aim not to earn much at first, but to earn steadily.
🔷 Monitor the news
The release of important economic data can easily turn the market in either direction. And while this factor is neutralized by the timeframe size when trading on daily charts, in intraday trading you have to pay attention to news releases. Do not trade half an hour before and after the news release. If you see some kind of Price Action setup, but half an hour later the news comes out just wait. After the news release, if the market moves in the direction indicated by the setup, you can enter the market. But not before the news release.
🔷 Watch the higher timeframe
Forex charts of the same currency pair can be completely different. It all depends on the timeframe, on the selected timeframe. And if you trade, for example, on H1, then it will be useful to look at the higher timeframe like H4. But we have to do it wisely considering the stage of the event on the higher timeframe.
🔷 Limit your profits / losses for 1 day
First, never set yourself a goal: to make N points in one day. This leads to looking for non-existent points to enter the trade, feeling angry at the market, and in the end, there are just quiet days when it's hard to extract your N pips even in theory, let alone in practice. I'm talking specifically about setting limits. A kind of total take profit and stop loss on trades within one day. It may seem silly at first sight, but this approach helps a lot in maintaining the discipline which is so important in intraday trading.
🔷 Consider the daily volatility of the traded pair
Let's assume you know that the average distance from the High point to the Low point of the daily candlestick for pair X is 100 pips. If your profit on a trade opened during intraday trading was about 70-80 pips, then it would be logical to close the position, because the potential for movement is almost exhausted. Likewise, if the price has already gone 70 pips in the trend, and a new pattern appears in the same direction, it would be quite stupid to open a new trade, because the price is about to "run out of fuel".
🔷 Do not leave the position for the next day
A serious error of beginners is to leave open positions overnight. Think about it: why should the set up that you found intraday be valid tomorrow? The market has long forgotten about it. The traders have a lot of new data, signals, someone has opened positions on higher timeframes, and so on. So why should your position hold?
By leaving open positions overnight you are simply playing roulette, trying your luck. And luck has no place in Forex. So, in order to avoid unnecessary losses, if at the end of the American session you have open positions, no matter what just close them.
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bit.ly/3spSQqC
🔻FREE Telegram channel🔻
t.me/DeGRAMChannel
🔻Contact for Paid SIGNALS🔻
t.me/DeGRAMForex