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Forex Day Trading Strategy

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5:29 am
June 27, 2013


John Smith

Member

posts 26

One of the Forex Day Trading Strategy that is often used by day traders is to buy and sell the same currency pair, same lots same time. In other words, you are taking both long and short positions in the same currency pair at the same time.

For example, buy 1 lot of EurUSD at 1.4239 and sell 1 lot of EurUSD for 1.4234. Note the difference between the buy and sell rate. This is the spread. Why pay the spread? The reason for buying and selling the same currency pair, same lots, same timing is that you are hedging your position. The up or down movement of the currency pair will provide you the opportunity to make profit.  Place a stop loss of 5 pips and take profit of 15 pips on both the orders.

Suppose the rate goes up. The take profit order will close your long position (buy order) when it reaches a profit of 15 pips. For the sell order, the stop loss ensures that you only lose 5 pips. Your net gain 15-5= 10 pips.  In this case, the winning buy order provides the foundation of 15 pips. By placing the stop loss you lock in your profit of 10 pips. 10 pips gain means $100 profit on a $1000 deposit with 1:100 leverage.

Never ever trade without a stop loss otherwise you can lose your deposit in no time. If the EurUSD rate goes down, stop loss closes your buy order at 5 pips loss while the take profit order closes your sell position when you reach 15 pips. Your net gain: 10 pips.   This forex day trading strategy works very well in a yo-yo market. How to get a yo-yo market? Time your orders with a fundamental announcement.

Now, you can practise with this forex day trading strategy on your demo account. Do at least 10 trades. This day trading strategy does not need more than 10 minutes for you to implement. With practise you can increase your pips to 20,30,40 or even more.

The days of manual trading are almost over. With the introduction of the metatrader platform and the use of MQ4 robotic script, most of the forex traders now use expert advisors also known as robots to trade automatically. People are making thousands of dollar on autopilot with forex trading robots.

5:56 am
October 1, 2014


James Pursel

Member

posts 8

Day trading, Scalping, News Trading or Hedging, all of these are most dangerous trading style in Forex business. Therefore, a trader can make it easy for him/her when he/she is enough experienced and skilled. I often perform Scalping, news trading and day trading but I never go for hedging. using Forex Holy Grail System for few months, I have been making enough profits in Forex. This system is giving me Most Accurate Trading Signals, and ensuring High Win Rate of 95%.

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