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When it comes to Forex trading, day trading is not always certain. But your success of day trading will actually depend on the knowledge that you have about the basics of day trading. To help you with learning the basics, here are some strategies that you can consider: Practice liquidity and volatility - To be liquid, is to be able to enter and exit in the trade with a pretty good price, since a currency pair that is liquid are the ones that most investors would be willing to invest upon. 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. Alternatively, you have to be volatile as well, especially when it comes to determining how far the currency pair could drop or increase on a given day. Determine where you are going to get in - When it comes to determining the best time to enter in a trade, there are three major things that you need to consider. The first is on identifying the candlestick patterns display as well as the reversal trends in price. And another is to seek out the volume and know whether the buyers are supporting the currency pair on this level, and lastly, know the prior price support, which is the level on where the price usually bottoms before it could reverse back. Come up with the best strategies - The two most common strategies when it comes to day trading are scalping as well as fading. Scalping is the most common among the two which involves closing your position as soon as 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. Practice “stop-loss” - Practicing stop-loss is the best way to avoid losing huge amount of money. 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. Be firm with your strategy - Avoid focusing more on earning profits, but instead, focus more on your strategy. 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. Remember that day trading may not be profitable for most people, and more than half of day traders actually fail. The best way to learn about the basics of day trading is through constant practice and by re-evaluating your strategies. More importantly, be dedicated and be patient so that all your hardships will pay-off. Look at general tips to survive in currency trading at forex trading secrets. Additionally, don't make things tougher for yourself by using 2nd rate trading platform, see how to identify the good one on online forex trading platform.
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basics of day trading, forex, currency trading, investment,
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