Benefits of Intraday Trading - How Webs

Breaking

Monday, December 31, 2018

Benefits of Intraday Trading

Intraday trading, formerly the only passion of traders who trade in an exhibition hall, is now a square game for all currency speculators who trade online. Encouraged by intensive price fluctuations over the course of the day, constantly rising rates, the capacity of modern PCs and competitive spreads and commissions, modern traders apply to different trading methods using an intraday strategy because they are not always aware of all basic news and technical reviews. In short, intraday Forex strategies can fail or bring success to the market.

Benefits of Intraday Trading
Benefits of Intraday Trading
What is attractive for intraday strategies for traders? Are there really effective methods for intraday trade? What is the nature of success in this trade strategy: happiness or professionalism? Can anyone study this type of strategy? What is the difference between a successful intraday trader and a successful position trader? And finally, what are the benefits of intraday trade compared to other market strategies?




Intraday trading is generally defined as a trading style when a trader executes transactions within the limits of a day, opens and closes positions for 24 hours. An intraday trader always excludes all transactions at the end of the trading day, regardless of whether they are profitable. Traders intraday offer no loyalty to any position. Their focus is on the next few pips, regardless of whether the price goes up or down.

The advantages and disadvantages of intraday trade are listed below:

Benefits:
1. Do not worry about news coming at night
2. More efficient profit management
3. A forced exit eliminates losses
4. Working with high price fluctuations
5. Positive emotions provide a positive attitude
6. Trading in liquid markets

Cons:
1. Intraday fluctuations can be essential to increase the degree of risk
2. Constant attention is needed
3. Neglecting the long-term trend
4. Need in constantly updated quotation flow
5. P & L are limited
6. Intraday strategy requires active trading that increases costs
7. Only a well-disciplined trader can succeed.

Intraday trading is more in the area of ​​technical principles than of fundamental analytical principles. However, it is a well-known fact that fundamentals can drive the market in the long term, but they are of no interest to intraday traders. Either way, a successful intraday trader has his ways to capture the movement that is driven by emotional reactions to economic news by market participants.

Act with support and resistance

This method is often used by Forex intraday traders. These are two aspects: first a trader must define the most important intraday trend and then, when the trend is defined, he must draw support and resistance lines. When the trend is defined as upward, a trader would buy at a support price and when the downward trend would sell a trader at the price of resistance. This method is followed by risk management strategies.

When dealing with intraday trade, follow the following principles:
• Use the main currency pairs because they imply tight spreads and a high degree of liquidity.
• Choose a Forex broker that offers constantly updated stream of bids.
• Fast execution and good order processing are the things that can save your money.
• Avoid trading when important economic news takes place, as the market reaction may hamper your trade expectations.

-------------------------------------------------

Benefits of Intraday Trading

No comments:

Post a Comment