| Feel like day trading the Forex market because you | | | | play against you ) |
| heard that it is very profitable for many traders out | | | | If you trade with the direction of the " Higher |
| there? Well...sad to say, day trading is ONLY | | | | Time-Frame " trend, such as the 1 hourly, 4 hourly or |
| profitable for traders who obey some important rules | | | | daily, you actually increase your odds by making sure |
| and then using them as a guide for their trading | | | | your trades are going with the flow of the " majority |
| decision. | | | | " of the market and not against them. |
| In this article, I will be sharing these 2 important day | | | | On the other hand, I do not mean that day traders |
| rules and once follow, your trading success would | | | | cannot trade both directions of the market |
| definitely be high too. But before I get into that, do | | | | regardless of the trend, however, it does mean that |
| you know why is day trading also known as " Intra - | | | | if you trade against the market you are somehow |
| Day Trading " so popular with traders? | | | | subjecting yourself to greater chances of suffering a |
| There are a few reasons to it but the main | | | | loss. |
| attractive factor is that this style of trading can really | | | | This is so because in a strong trend, there would be |
| offer very high rates of return in a relatively short | | | | one force ( whether buyers or sellers ) dominating |
| period of time. If you do not know this fact yet - | | | | the market and it is definitely not wise to fight it if |
| Just like any other financial tool, Forex trading is | | | | you wish to win more times trading. |
| actually a double edge sword. | | | | The next essential advice applies to any trader who |
| When you subject yourself to any trading condition | | | | is into trading any market. And it is none other than |
| that would get you huge returns, then do bear in | | | | the almighty "Stop losses"! |
| mind that the risk accompanied would be huge as | | | | 2) Never Forget Your " Stop Losses " |
| well too! Forex trading is after all, a game of " | | | | They are necessary as they act as a function to |
| probability " between sellers and buyers in the | | | | preserve your previous capital should the trade go |
| market. Hence, if you are really determined to day | | | | against you. However, stop losses should not be |
| trade the forex market and serious about winning | | | | placed anyhow though.. It should be placed |
| and succeeding in the long run... | | | | "strategically " and not too close to your entry price. |
| Then it is critical that you understand how to give | | | | That is because the markets do not move in a |
| yourself a trading edge and put all odds on your side | | | | smooth and linear manner but they typically move in |
| while day trading. Choosing to ignore these important | | | | a " Zig-Zag " style and with a lot of noise and very |
| rules would only lead to subjecting your trading capital | | | | random price action along the way. |
| with higher level of risk, uncertainty and definitely | | | | 2 proven positions for you to place the stop losses |
| increases your chances of suffering more losses. | | | | would be after a " Price Pullback " or " Having |
| Here are 2 important tips to help you gain an upper | | | | Spotted A Pinbar At Critical Fibonacci Retracement |
| edge while day trading forex anytime: | | | | Level ". |
| 1) Always " Wise " To Trade with the trend. | | | | Failing to understand " How " to place your stop |
| Perhaps you might already heard it before that the " | | | | losses in a strategic location, you may end up opening |
| Trend is your friend " and you would achieve more | | | | a trade and then find out that your trade was taken |
| success following it than opposing it. But why is it so? | | | | out and only to see the trend resume and continued |
| Isn't it true that when you day trade, it is usually so | | | | n the direction you previously wanted. |
| short and fast that you do not need to worry about | | | | The end result was that you are actually right about |
| the trend at all? That is the Wrong way to look at it! | | | | the direction but just because you place your stop |
| In fact, most traders who choose to ignore this | | | | loss too close or not at a strategic location, it could |
| proven fact would pay for it miserably for their | | | | get hit most of the time unnecessary. |
| mistake. Day traders need to be concerned with the | | | | Do bear in mind that the stop loss you use would |
| major prevailing trend because in this way, you would | | | | give your trade enough room to breathe. No point |
| " less likely " to be caught up in a breakout against | | | | losing unnecessary as when all these " little stop |
| your position! ( This happens when the big players | | | | losses " get accumulated, it would drain away a very |
| enter the market with huge volume of funds and | | | | significant amount of your capital. |