Intraday is a day trading strategy, meaning the order will not be overnight. Instead, when the session ends, you usually close the order as well. This will help you become more comfortable and secure. Due to the world political situation, there are more and more volatility. But forex currency pairs are extremely sensitive to volatility, so if you are not careful, your trading is easy to reverse, making you unable to keep up and hit Stop Loss.
Like its name, Intraday trading strategy usually occurs on short time frames, they may end in each trading session, or may extend to later sessions, but the order is always closed during the day, not overnight. Traders manage to open/close positions in minutes, hours and even seconds with the goal of taking advantage of the rapid fluctuations of prices to make a profit.
Most intraday trading strategies mainly use technical analysis, based on price behavior so that traders make decisions for each trade.
Intraday strategy has the two following main forms:
"Little and often fill the purse" is probably the phrase used to describe the exact form of scalping. This is also the trading style used by many traders. The biggest disadvantage of scalping is that you have to keep the order constantly, lose a lot of transaction fees and sometimes the profit is modest or limited because the order needs to be closed during the day.
However, your trading sentiment will be more comfortable, less risky, and no swap fees. So if you have determined to trade scalping, the expected profit-taking level will not be as much as if you were trading on a swing or long-term trade.
It also depends on the personality of each person and the environment you live in. Because each person will have his own strategy. There are many traders now choosing forex as part time jobs instead of full-time. Therefore, they will have to spend a lot of time doing the main job, so they can not keep an eye on too many forex currency pairs, from which they will choose to play scalping or day trading to make "light" debut because of long-term transactions.
Regardless of which method you choose, you should consider a multi-time chart to get an overview of the upcoming trend of the currency pair you want to trade. Then, choose the most appropriate time frame, and you trade on the frame, you have to set a stop loss, take profit according to that frame. For example, if you trade under H4, you should cut profit loss according to H4 frame, if you set the stop loss according to M5 or M15, the scanning of orders is extremely easy to understand.
Another important point is that you must not confuse the above mentioned transaction forms. With surfing, it's impossible to expect to win a hundred pip order (of course it can happen, especially if you trade pairs like gold or currency pairs containing GBP are all pairs with fluctuation is large) but in return, your stop loss will be less. Similarly, in the long-term trade, the expected profit take may be thousands of pips, but the stop loss is also up to several hundred pips. Are you strong enough to withstand the heat in case the market is completely opposite of you?
Trading with the best intraday strategy is inversely proportional to the psychological challenge and patience. Short-term trading, psychological pressure will be greater and requires more patience to achieve maximum profits with minimal risk.
In fact, the short-term traders are under greater psychological pressure than long-term trading.
Transaction discipline also needs to be maximized. Quick order - Accurate - And escape at the right time, no greed are the key factors.
Most short-term traders fail because they do not learn Forex methodically. And most importantly, the foundation of Capital Management, the basic knowledge is almost empty. Do not know how to use leverage. And it is not known when the Price Action signals will be applied effectively.
Always remember that to succeed with intraday trading strategy takes time, effort and patience. When you practice these factors, you will survive in this fierce market.