In the world of Forex Trading, day trading is not always a sure thing. However, your success will solely depend on the information that you have, especially when it comes to the basics of day trading. To help you with learning the basics, here are some strategies that you can consider:

Practice liquidity and volatility – Being liquid simply means that you could get in or get out with a relatively good price, since a liquid currency pair is usually something that most investors are willing to buy and sell at the same time. This could also mean that there will be a smaller spread, and that there will be a little difference between the bids to the asking price. On the other hand, be very volatile when it comes to measuring how far the currency pair could fall or rise in a certain day.

Know your entry points – When determining what would be the best time to get in to a trade, three things must be considered. First, is by knowing the candlestick patterns display and the reversal trends in the price. Next is to look for the volume, on whether the buyers were supporting the currency pair on this certain level, and finally, consider the prior price support, which is the level where the price usually bottoms before it reverse back.

Decide for the best strategies – Scalping and fading are two of the best approaches when it comes to the day trading. Scalping is the most preferred strategy among the two which involves closing the position when it becomes profitable. On the other hand, fading is the practice of getting out of the trade as soon as the price begins to rise.

Apply the “stop-loss” – Setting up a stop-loss is the best way of avoiding to lose a big amount of money when it comes to the day trading. As soon as the trade takes a turn for the worse, which you are not expecting at all, it is best that you get out while you still can. Applying the stop-loss simply means that you should discontinue trading for that certain day, instead of taking more risks in trying to make up for your losses.

Focus on your chosen strategy – Instead of focusing on earning more, shift your focus towards your strategies instead. Be open to the idea of tweaking your strategy if something is not right with it. Never be afraid if anything goes wrong, because you still have good chances of becoming successful in the coming days.

Bear in mind that there are people who don’t get much profit with day trading, and as a matter of fact, more than fifty percent of day traders actually fail. The best thing to do in order to learn the basics of day trading is to do more practice while re-evaluating your strategies at the same time. More importantly, be dedicated and be patient so that all your hardships will pay-off.