In recent years, day trading has become highly popularn with the people. There are many trading gurus out there who are glamourizing day trading. To tell you the truth, day trading is risky and stressful. But it doesn't mean you should say away from it. So how do you succeed at day trading. By learning a day trading strategy that suits your personality and style. There are many day trading strategies. You need to be selective in choosing the righ one for you. Trend trading is the most popular trading strategy that is used by the global hedge funds and other successful traders. Always remember the saying, " Trend is your friend." Big profit potential lies in trades that capture big market moves. But most of the time the market is not trending. 70% of the market moves occur only 20% of the time. Most of the time, markets are ranging. Ranging means they are consolidating and moving sideways. You identify a range by the rectangle patterns that form in the price action charts. However, range trading is not as profitable as trend trading. But what to do when the markets are not trending. At those times, you can only do range trading.One of the best trading strategy in range trading is scalping. As a day trader, you don't want to lose sight of the overall market. So how do you go about determining when the market trending. You need to use Multiple Timeframe Analysis. Looking for opportunities to buy in a uptrend or sell in a downtrend is much more profitable as compared to buying at the top and selling at the bottom as done in range trading. In multiple time frame analysis, you can use the daily or weekly chart to determine the overall trend in the market and then use a hourly or a 30 minute chart to narrow it down to determine the exact entry and exit points in the trade. Currency markets are influenced by the large transactions done by the big banks. If a large transaction is done by a bank, it can effect the overall price action in the market in the short term. There is a day trading strategy called, " Fading the Double Zeros" that tries to capitalize on this. There are certain psychological price levels that are used as triggers for large order flows by banks. If you have this insight and believe that the price action is being influenced by large double zero order flows by a big banks, you can use this insight to make many pips in day trading. Then you can base your strategy on the different trading sessions like the Asian Session, the European Session and the US Session. These sessions take place at different times and have different characteristics. There is one trading strategy known as the London Rush Hour Strategy. There are many strategies that you can use but in the end whatever strategy you choose, should match your style and personality. It should be less stressful, less risky and more profitable. After selecting one strategy, master it on your demo account. Once you have mastered it only then trade live with it!
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