The forex market is considered to be the largest trading post around the world Indeed, a great number of traders used different marketing techniques to earn money. The process is about buying and selling a stock on the same day. Day trading seems to be a tough competition since most traders watches the movement of trades every second or minute which is a crucial factor. Day trading is really a tough challenge to face, that’s why I’ll be providing you some pieces of advice to help you handle your trades using the right strategies for day trading.
The Proper Timeframe to Trade
Since the forex market operates the whole day, every trader will encounter difficulty determining the flow of market and to identify which suitable response to take. Time is an important factor when it comes to trading currency pairs. I would recommend that you consider the 10 minute time frame but the results would be dependent on the system that you’re using. Once you’re familiar with your system, you’ll surely know when the best time to trade.
Like for instance, if the price does not seem to blend on your trading system( rare systems), the range between 3-5 minutes will likely suit fast time frames. For instance, if you’re engage to trading with systems such as grid trading and hedging. When you trade on a fast pace movement, this can have two results- either you gain money or lose everything.
In addition, the price and any technical analysis are no longer important in fast time frames. On the other hand, if you’re using a system that utilizes technical analysis, you’ll definitely want to go with a slower time frame. Moreover, you need to let your system fit in. I’d recommend the 30 minute chart.
I want to emphasize that it you may have the option to go bigger or smaller, this would depend on your system. For instance, the Fibonacci retracements who fits in a 15 minute chart. Thus, you need to grasp every inch of detail about your system so that you would identify which is the appropriate time to trade.
The Right Time to Trade for Individual Currency Pairs
If you want to figure out the best time to trade individual currency pairs, well you need to be familiar with on the geographical location and macroeconomic factors. Once you’ll familiar on particular time for its peak, then you can surely hit the profits. Let’s take forex trading in Asia as an example, particularly (Tokyo 7P.M.-4 A.M. EST). One of the market giants in forex is Tokyo, no wonder it has been competitive through the years when it comes to trading individual currency pairs.
If you’re target is 90 pips, a good choice of currency pairs would be USD/JPY, GBP/JPY and GBP/CHF. This is the real picture so it is suggested that you gather up relevant information for you to formulate the best strategies for day trading.
Tons of day trading strategies are available in the market though you need to keep in mind that the result would rely on how you handle your system effectively.