Trading on the same day is one of the least risky trading strategies. Such a strategy is known as day trading strategies. A trader opens and closes a position on the same day with the potential to get profit from price changes that occur during the day.
Additionally, this strategy is suitable if you have time to observe information movements and price charts constantly throughout the day. Thus, you can take the necessary action if there is a price movement outside the forecast. According to Timothysykes, Day Trading is incredibly easy to get started. Thus, it is suitable for novice traders to start their trading journey.
Check out several techniques that are suitable to be applied in day trading strategies:
Trading trends
By using this technique, you can observe the currency trend of price movements over a longer time to find the potential entry and exit points of the desired trade.
For example, you can choose a period of daily or weekly chart display on the chart of the currency pair you want. Then, the chart will display the trend of ongoing price movements. If you have found the trend, narrow the display period and observe price movements in the range of minutes to several hours. Then, open your trading position in the direction of the observed movement.
Counter Trend Trading
Counter trend trading requires you to see a reversal gap or of price movements at the end of a trend. You can observe the movement of the trend on a daily or weekly chart range. Then, you have to wait until you find the saturation point of a trend.
You can find this saturation point using the help of indicators, such as stochastic or RSI to see the overbought or oversold potential of a currency pair. If the opportunity is already visible, look for the entry point of the position you want to open. However, you should note that this trading technique has a higher risk, but also has very large profit potential.
Breakout Trading
You can use this trading technique when the price of a currency pair is moving volatile with the distance of support and resistance close together. It usually indicates a breakout or a large price movement will occur.
To overcome this issue, you should look for the highest resistance point and lowest support. Then, you can open a buy position above the resistance point and sell position below that support point. When the breakout occurs in one of the directions of movement, you just need to close the opposite position and wait until the price movement produces the profit you want.
