What is day trading in the foreign exchange market? Forex market day trading tips

There are also many trading methods for foreign exchange investment for investors to choose from. For example, some investors like to do day trading. Day trading is also known as intraday trading. This article will specifically introduce to you what day trading in the foreign exchange market is and what are the skills of day trading in the foreign exchange market.

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What is day trading in the foreign exchange market

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Day trading in the foreign exchange market mainly refers to a trading method in which positions are held for a short period of time and do not remain overnight. In the foreign exchange market, intraday exchanges capture trading opportunities that can quickly make a profit after entering the market, and then leave the market. If you cannot make a profit, you should prepare to leave the market quickly. Due to the short time in the market for intraday trading in the foreign exchange market, the corresponding fluctuation risks that need to be assumed are relatively small.

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Forex market day trading skills

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First of all, we must establish the idea of ​​trading with small profits. You should not be greedy in the short-term during the day. Set yourself a reasonable profit margin. When you reach your goal, you must immediately exit the game. Then re-evaluate the market and wait patiently for the next trading opportunity given by the market.

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Secondly, respect the market and conform to the market. Intraday super short-term traders cannot predict the market, only when they are empty can they accept the market and integrate into the market. In front of the market, traders must always maintain their humble attitude. In front of the market, we are always insignificant.

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Third, you must select trading opportunities that conform to your trading principles and familiarity, and do not fight uncertain battles. If you don't make a move, you will win. This is especially important in the ultra-short intraday period because the profit is very thin, and it depends on the success rate of the shot.

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Finally, like other types of trading methods, risk control is also the top priority of intraday ultra-short. For example, an ultra-short intraday is like a guerrilla attack, in order to obtain real profits as the starting point and ultimate return of the transaction. If you win, you will retreat immediately, save your own strength, and wait for the next opportunity.

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Specific trading skills:

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1. Breakthrough

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2. Relevant market master-slave, strong and weak relationship

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3. The end and turning point of the sub-trend

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4. Opening and other skills.

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the required state of mind

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The way to determine if a Forex day trading system is profitable is to test it. The test results need to take into account commissions or spreads and should still show reliable long-term profits. Investors should focus on their biggest losses, and the more consecutive "maximum losses" an investor account can tolerate, the better the chance of success. If the investor has not actually traded their system, the investor should find a brokerage firm that will be able to trade on paper within a few months, while gaining market knowledge and understanding how the speed or slowness of trading can affect the investor or how the investor trades. .

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The yen typically trades vigorously against the dollar when Tokyo or New York markets open, but can be slow to trade during its investor time. The euro trades the most when both London and New York markets are open. Forex traders have to decide how many hours a day they can trade and which currency pair to trade. Investors should then look at historical data to find when those markets were trading at a time appropriate to the investor's approach.

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The demand for Forex day trading makes it necessary for investors to have all the patience, concentration and perseverance that investors can call on any day they choose to trade. If an investor loses patience, an investor may enter the market at the wrong time and make a huge loss, or an investor may exit the trade prematurely and turn a possible big win into a small one. Investors who lose focus may miss important changes in market rhythm or fail to see meaningful price formation, leading to missed opportunities or falling victim to the illusion of opportunity.

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This article explains the concept of day trading in the foreign exchange market and related techniques for day trading in the foreign exchange market. Investors should note that Forex day trading requires a profitable system, sufficient capital to withstand the inevitable surprises, and traders must be mentally prepared and able to trade.