Translated from Russian by Google Translate
2 Сентябрь 2009

Day Trading Forex

There are many ways to trade the forex market. One of them is forex intraday trading. This type of trade is often referred to as trade in quack period of time. This is partly true. Many traders prefer intraday trading for the reason to obtain a quick profit by manipulating small amounts. As an example, an intraday strategy can lead Pipsing and scalping. All of these strategies in their own good, and all united by certain characteristics:


• Trading tactics (TT) based on the principles of money management, that is, on the principles of money management
• Most of the TT based on the trade by trend-following

Wealth management is reduced to the ability to diversify its currency portfolio. Improperly organized system in terms of risks to which the Forex daytrading can cost you your deposit. Therefore, the cornerstone - risk management.

The next point at which relies intraday forex trading - trade on the trend. There are a lot of fans to trade corrections, etc., but the maximum profit you can get it through the competent application of the tactics of following the main trend.

But why trade on intraday charts very often so unpredictable? A banal. The fact that all the events that occur on an intraday interval, are nothing like the market noise. It turns out that when a trader tries to analyze this schedule, it can not combine individual pieces of the puzzle in a single picture, as most of the movements that occur on an intraday interval, they are fractals.

What does this mean? This means that if we increase or decrease the time interval, which are traded, the situation, ie behavior of prices will remain similar. This situation does not occur very often, but, nevertheless, there is often enough. It was her and convinces traders that the price trends for different time intervals is the same, and what can be equally successfully applied the same methodology as for the trading hours, and daily charts with all the attendant.

And the problem may lie in the fact that on the daily charts, some elements, such as Japanese candlesticks or some of the oscillators may not work as effectively as on intraday. Therefore, after you define that for you is the preferred forex intraday trading, then be sure to test on a virtual trading account those elements that you plan to use to analyze the market and ensure their efficiency at this point in time.

In addition, should bear in mind that forex intraday trading notable for the fact that trade with the trend here may be completely ineffective. The problem is that at this time interval is very small trend component, which makes it necessary to use market analysis for more effective methods.

One of the serious shortcomings, which has an intraday forex trading - it is impossible to give the profit flow. On a longer time scale, we can with the systematic growth trend purposefully not close the position. If we are forced to trade intraday record profits, thereby preventing the possibility of a leak in our profits. That is when we trade in the day, we will be limited only to the segment, which will cost per day. If we carry on the trade day, or monthly charts, the potential is far greater because of the time that we will keep an open position during all this time, we are able to obtain much more profits than in similar activities on intraday charts.

Should take into account the fact that the feature of the market lies in the fact that in some way to fold its momentum in the trending move. That is, most of the time on the market dominates advantage or sellers or buyers. Lateral trend - only a short time short-term uncertainty. You must take into account a feature of the market and should try to identify the trend and adapting to it. Just so you can most effectively apply the trading methodology for intraday charts of prices.

A separate line worth mentioning and various trading strategies, which are available for sale. Perhaps everyone your opinion on this subject, but we believe that those who sell trading systems - losers. Why? Because otherwise they would not sell their ideas, because they would rather the money they receive through the use of the trading system. It is for this reason, with regards to purchase trade ideas we hold the view that for the most efficient, and better value to use only the operating time. Only in this case you will follow his ideas, his vision of the market, hence you’ll develop as a trader and as an analyst.

It is interesting to view one of the legendary Analyst - Larry Williams. He held the idea that the Forex daytrading suicidal, as many elements of technical analysis can not give good results intraday charts. «All I know traders who trade within the day - losers. They can not effectively engage in trade, as the entire arsenal used by them for analysis, is dead on intraday charts. A good profit can be obtained only by holding a long time a winning position. This position must be at least a few hours … ». So said Larry was right.

So, in conclusion, analyze once again that we have in intraday trade.

• Your peace is not disturbed expectation of bad news, you are sleeping peacefully, but that the unpredictable market dynamics, which may occur during the day, you could pull the nerves.
• You will be forced to look for currency pairs that have high volatility. Otherwise will have to be content with an already small profits.
• You can not calmly and slowly to analyze the currency market, as you may have to make decisions quickly.
• You will need to record profits at the end of the day, even if there is potential for further growth, and you can get even more profit

Thus, spending the finish line, it’s worth noting that the main drawback of intraday trading - a limited profit. But ultimately you will have to decide.