Day Trading Forex Strategies for Success

Day trading forex strategies can be based on simple concepts, and critical thinking. There is no need to reinvent the wheel or find the holy grail of trading.

Day Trading Forex Strategies for Demanding Traders

Some nice day trading forex strategies are based on simple ideas and critical judgment. Traders have been experimenting with various indicators. These range from logic analysis to even astrology and metaphysical beliefs. But those in touch with reality know better. They know that the financial markets are driven by supply and demand. And these two forces are in turn driven by complex fundamental changes in these markets. Fundamental analysis wins over most other methods of analysis, but is also the hardest possible way to measure the forces of supply and demand. Some good forex signals, capable of generating a full time living, are possible to infer. All through basic fundamental analysis. All forex traders, from scalpers to swing traders, need to pay attention to fundamentals. As it can help determine the daily trend in the market. Doing so, allows them to make wise decisions on open losing trades. And some very big losers can be avoided when the trades are closed early. Fundamental analysis doesn’t have to be about the long term only, as many traders mistakenly believe. Instead, it captures an entire spectrum of information, ranging from hours to many months in the future. All currency pairs follow rules of logic, and fluctuate so that the money all around the world will move to the best possible state. That state ensures better returns, the least amount of inflation possible, and avoidance of uncertainty. That’s the logic all investors have. Fundamental analysis comes to deal with this and traders use it wisely over the quarterly period. The quarterly period is a very convenient time frame to do a fundamental analysis study. Day trading forex strategies are based on the outcome of this quarterly study, because the quarter determines the trend for 3 months. Each month determines 4.2 weeks, and each week determines 5 trading days. And the trend is for example up, there will be more up days, and with more profound trends, than there will be down days. Online CFD trading allows traders to cleverly extend beyond just day trading and to hold some trades overnight. So that in the case of an uptrend, a long trade is exited near the high of the next up day.

Day Trading Forex Strategies for those wanting to be out by the close

There are traders who prefer day trading forex strategies where they won’t have to hold trades overnight. Generally this is not a good idea. But if you do have to trade this way, you can still rely on fundamental analysis. And especially short-term leading fundamental analysis. Which is nothing more than further refined fundamental analysis, down to a single day. Day trading this way, still requires some technical analysis, but using it only as a rough guide. The rest of the strategy has to be focused on the reports and news on each day. This is the data that will make the market move in that day. Day trading is not a strictly defined term, as one trader’s night time is another trader’s day time. But it implies that no trades should be held overnight, as the trader in question wants to be flat during these hours. Strict day trading, where you have to be flat by the close can be based on the day’s news and report release times. The trader simply has to compare their findings against longer term fundamental factors, and make trading decisions. Once again, CFD trading platforms can facilitate trading, and even allow for the day trader to use large size, flexible stops. These stops together with hedging and risk control strategies can be used to capture parts of the daily price movement of a currency pair.