The first feature of intraday trading (also known as Daytrading)– a daytrader closes his orders with the closure of the market. It allows him to avoid confuses “where price will go tomorrow” and take a rest during the night.
The second feature of the intraday trading is that the need to continually check the status of a large number of assets reduced. Unlike the scalper , the daytrader has less twitching. Most of all, it is enough to open 3-4 orders and check them with a given time interval, depending on the dynamics of the market. Therefore, it does not take away the right to analyze the movement of prices on shorter intervals, if your work rules (algorithm) requires it.
Furthermore intraday trading strategies, in fact, not so many, and some of them are similar to strategies in the scalping or medium-term regime. While, there are many specific “strategies” written for a particular trading platform, type of asset, or market. A separate items here is the so-called Forex strategies. But about it next time. The task of this article is to consider the fundamentals of the strategic distribution of intraday trading.
Daytrading strategies are :
1. Regarding time intervals (timeframes):
– Minutes, five minutes. In fact, it’s scalping;
– Half-hour, hourly. They require rapid reaction and understanding of the market, therefore, they are not recommended for beginning traders. The risk of ten points;
– Four hours. At this interval, it is reasonable to use indicators of technical analysis. There is a possibility of a big profit, but also the deposit is higher than in the previous ones;
2. Based on the news of the economy. It requires the skills of fundamental analysis and understanding of hidden mechanisms of the media. Since the impact of the economics and politics of securities has a protracted and ambiguous character. As a result hidden beheviuor it is not safe to keep asset.
3. Based on the use of technical analysis. Forex indicators, levels, Japanese candles, graphic interpreters. Hence the strategy is one of the most accurate strategies. Due to owns the above tools the daytrader does not allow himself random actions, gambling impulses. The daytrader determines a bearish fakey, bullish fakey or false breakout (fakey pattern), and acts according to the situation.
4. Another one is using automated systems – Forex robot. The day trader trusts the trade in software code, and from time to time checks the account status. The robot trading is often offered in advertising for beginners, arguing with simplicity and reliability. But beware! Therefore to trust your money to a Forex robot, you must at least understand which schemes it is trading, or even better, create your own.
Author advice: keep in mind to earn well, is enough to trade 3-4 strong instruments profitably per month. It is much more productive than spoiling your nerves, collecting tens and hundreds of small transactions.