There are also many trading methods for foreign exchange investment for investors to choose from. For example, some investors like to do day trading. Same-day trading is also commonly referred to as intra-day trading. This article will specifically introduce you to what is the foreign exchange market day trading, and what are the foreign exchange market day trading techniques.

Foreign exchange market day trading

What is the same day trading in the foreign exchange market

The day trading in the foreign exchange market mainly refers to a trading method in which a position is held for a short period of time and no overnight position is left, that is to say, it must enter the market on the same day and exit the market on the same day. In the foreign exchange market, today’s exchanges capture the trading opportunities that can quickly make profits after entering the market, and then leave the trading opportunities. If they cannot make profits, they must quickly prepare to leave the market. Due to the short time in the foreign exchange market for day trading, the corresponding volatility risk that needs to be borne is also relatively small.

Foreign exchange market day trading skills

First of all, we must establish a small profit trading idea. Don’t be greedy in the short-term, and set yourself a reasonable profit margin. When you reach your goal, you must be out immediately, and then re-evaluate the market and wait patiently for the next trading opportunity given by the market.

Second, respect the market and conform to the market. Intraday super short-term traders cannot predict the market. Only when their hearts are empty can they accept the market and integrate into the market. Traders must always maintain their humble attitude in front of the market, and we will always be insignificant in front of the market.

Third, we must select trading opportunities that are in line with our trading principles and familiar to ourselves, and do not fight insecure battles. If you can’t make a move, you will win. Intraday ultra-short due to thin profits, it is particularly important to rely on the success rate of shots to win.

Finally, as with other types of trading, controlling risk is also the top priority for intraday ultra-short periods. For example, the ultra-short day is like playing guerrilla, gaining tangible profits as the starting point and ultimate return of the transaction. If you win the battle, you will retreat if you fail to win, save your vitality, and wait for the next opportunity.

Specific trading skills:

  1. Breakthrough
  2. Relevant market master and slave, strong and weak relationship

Third, the end and turning point of the sub-trend

  1. Opening and other skills.

Required mentality

The way to determine whether a foreign exchange day trading system is profitable is to test it. The test results need to consider commissions or spreads, and should still show reliable long-term profits. Investors should pay attention to their biggest losses, and the more consecutive “maximum losses” an investor’s account can withstand, the greater the chance of success. If the investor has not actually traded his system, the investor should find a brokerage company that can conduct paper transactions within a few months, while gaining market knowledge and understanding how the speed or slowness of the transaction affects the investor or investor’s trading style .

When the Tokyo or New York market opens, the yen usually trades vigorously against the US dollar, but trading may be slow during the time of its investors. When both London and New York markets are open, the euro has the largest trading volume. Forex traders must decide how many hours a day can be traded and which currency pair to trade. Then, investors should look at historical data to find the time for trading in those markets at a time that suits the investor’s method.

The demand for foreign exchange day trading requires investors to have all the patience, concentration and perseverance. Investors can convene investors on any day they choose to trade. If investors lose patience, they may enter the market at the wrong time and suffer huge losses, or they may exit the transaction prematurely and turn possible big wins into small wins. Investors who lose concentration may miss important changes in the rhythm of the market, or fail to see meaningful price formation, leading to missed opportunities or becoming victims of the illusion of opportunity.

This article explains the concept of day trading in the foreign exchange market and the related techniques of day trading in the foreign exchange market. Investors should note that foreign exchange day trading requires a profitable system, there is enough capital to withstand the inevitable surprises, and traders must be psychologically prepared and able to trade.