Forex or currency day trading has only been accessible to trade for retail traders over the last few years.
Take advantage of currency day trading now – just imagine how developed this area will be in a few years time!
OK so let me explain…
The Forex market is in constant motion – apart from closing during the weekend (Saturday and Sunday). Consequently there are many different strategies you can develop which can fit into your existing lifestyle. Currency day trading is one of those strategies. Typically a trader will open and close a trade or position during the course of the same day.
So you how can you profit from ‘reading’ a bunch of lines on a chart and day trading the currency market? To some this can sound technical but honestly, the simpler you make your trading, the easier it will be AND the more profitable you will be!
Some things to consider…
The trader observes the price and time movement on a chart. These include bars, lines, point and figure, and Japanese candle sticks – the most favoured method. Candlestick charts originated from Japan in the rice trade during the 1700s. The method is still used today, together with further influence from ancient Japanese ways and traditions.
The candlestick chart will be used in currency day trading as well as currency intra-day trading, scalping methods and other forms of trading. There’s not enough time to expand on the details of candelestick charts in this post but will be covered later as it is important to understand the formations of this type of chart.
We can clearly see the demand, supply, market sentimant, volatility and volumne of buying or selling evolving in front of us due to live data feed charts. To make the most of this information in order to help our currency day trading, we analyise this data in several ways (detailed below). The goal is to trade with minimum risk for consistent and profitable gains – easy to say but a little harder to do! Consider identifying Channels, Trend Lines, Support, Resistance, Bollinger Bands and RSI to your currency charts when day trading.
Check new posts for how to add these indicators to your charts and how to interpret price action according to your readings and analysis foe success at currency day trading.
To Your Success!