From time to time, many different strategies and trading styles have been developed, one of them is intraday trading. If you want to pursue it, you must understand it completely first and see if it is the right choice for you. Once you get to know about it, you will completely understand the emotional stress, commitment, and risks that come within this strategy.
What is intraday trading?
It is a term applied when traders actively pursue trading over one day. If you are already into the forex market, you would have known that the prices of securities such as currencies fluctuate a lot even during a day. Now, short-term traders tend to benefit from these highs and lows.
In intraday forex trading, each trading day is a brand new one, and it is meant to be all closed at the end. The traders pay close attention to the price fluctuations and the time trades and make a sudden attempt whenever they feel that good profit can be earned.
These traders work through regular interval charts like 5, 15, 30, or 60 minutes to keep an eye on the changes happening in the market. In intraday forex trading, traders make themselves used to highly risky and panic situations.
Intraday Trading Strategies
In intraday forex trading, traders work on the strategy that suits them best among the many developed strategies.
Let’s take a look at them:
- Scalping: It is a comparatively, less risky strategy because the traders work with small price changes to gain small profits numerous times throughout the day.
- High-frequency trading strategies: they use high tech algorithms to exploit minor or short-term security inefficiencies.
- News-based trading: The trader takes steps according to the news announcements about the stock. Such as economic reports, events sharing information about price actions of bonds, stocks, and other securities.
- Range trading: It occurs when the security trades among consistent low and high prices for a specific period. And the traders make their decisions according to that.
Conclusion
Intraday trading is all about making the perfect and quick choices regarding the selling and buying of currencies. In intraday forex trading, traders never go against the market trends. They often make a few trades at a time to monitor it. Each intraday transaction must be done with an account that provides speedy execution. Though it is not an easy process, with practice and the right strategies, traders can achieve much.
