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17 Proven Currency Trading Strategies: How to Profit in the Forex Market, + Website
book

17 Proven Currency Trading Strategies: How to Profit in the Forex Market, + Website

by Mario Singh
February 2013
Beginner content levelBeginner
256 pages
5h 56m
English
Wiley
Content preview from 17 Proven Currency Trading Strategies: How to Profit in the Forex Market, + Website

Chapter 7

Strategies for Day Traders

As a day trader, your biggest pet peeve is holding trading positions overnight. You are more concerned with finishing the day without an open position than the actual result of the trade itself.

Your trades are characterized by profit targets of around 20 to 50 pips per trade. Most day trading strategies involve a combination of both technical and fundamental analysis.

For technical analysis, chart patterns, candlestick patterns, and indicators are important considerations. For fundamental analysis, trading important news, such as non-farm payrolls (NFP) and interest rates, is the focus.

Four strategies are discussed in this section. The first two—fade the break and trade the break—are centered on technical analysis. The next two—gawk the talk and balk the talk—are centered on fundamental analysis, or news trading.

All strategies are developed using the 15-minute (M15) time frame and the 30-minute (M30) time frame. The biggest reason why these time frames are most suited for day traders is because the positions are most likely to exit in a day. As a day trader, the biggest frustration that you will face is the constant dilemma of leaving a trade open or exiting it manually. Sometimes, Murphy’s Law strikes when you decide to exit the trade manually, sending your trade to its intended profit level had you left it open in the first place.

To prevent such scenarios, set some guidelines for yourself when it comes to closing off your open positions. ...

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Publisher Resources

ISBN: 9781118385524Purchase book