Jan 03, 2020

Day trading strategy is said to be one of the most basic forex trading strategies that all forex traders must know. If you know the basics, you can improve from that. Without the basics, how can you even build a decent strategy? So that’s why in today’s article, we will focus on the details of day trading strategy. What does it mean? Who can use it? What kind of trader is suitable for it?

day trading strategies forex

What is day trading strategy?

Day trading is a transaction of buying and selling your forex instruments in a very short time. If interpreted strictly, day-trading is buying and selling during the day and the buy order is settled in the day. However, day-trading can also take a longer time, from a few days to a month.

Typically, these transactions can only be done by brokers, but thanks to the Internet, even single investors can now do this.

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What is day trading strategy like?

Traders who follow a day trading strategy (day trader)  often do not pay attention to the business strength of the business when deciding to buy shares of the company. Instead, they rely more on technical analysis, on the trend of price movements.

Distinguish Day trading and swing trading in the currency market:

Day trading is not just done with stocks. Applicable to options, futures, commodities, currencies and other financial instruments. As with any investment method, day trading methods have both advantages and disadvantages.

Day trading has the strength of being able to make profits within the day, a large trading frequency helps increase profits and optimize profits. Investors take advantage of trading size and lightning trading strategies to make money from the smallest price movements.

Day trading serves two important functions of the market: keeping the market efficient thanks to arbitrage and providing more liquidity to the market (especially on the stock market).

However, this is a high-speed, high-frequency transaction that easily makes investors "seasick", thereby easily leading to losses if there is no compliance with the strategy.

There are still people with enough ability, luck and discipline and bravery to participate in this risky game, especially those who take advantage of the high frequency trading that brings. In high frequency trading, companies use sophisticated computer programs to send a series of trading orders to the market.

Day trading strategy requires traders to have:


The best trading platform: a trading platform with high configuration computers that allows investors to simultaneously execute a large number of trading orders - the most optimistic while stocks fluctuate sharply.

Analysis software: trading software is an expensive tool but the investors cannot afford it. Those who pay special attention to technical analysis often rely more on technical indicators than on news.

Funds: Day trading is considered pretty risky. Therefore, you shouldn’t put all your money in this strategy. A day trader must always have some money to spare in case things go wrong. 

day trading strategies


Knowledgeable: To be a successful day trader, you must have in-depth knowledge of the assets you’re trading. The charts can sometimes be misleading or incorrect. Therefore, you deep understanding of the nature of an asset and its market is very important in such situations.

Discipline: Of course, to be a good forex trader in general, you must always have discipline. Discipline is considered one of the most important qualities of a forex trader. Without discipline, you can easily lose your control and make really, really terrible decisions. Day trading does not have room for those kinds of mistake.