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How to use Forex Day Trading Strategies to Profit!

How to use Forex Day Trading Strategies to Profit!

Are you looking to profit as quickly as possible in Forex day trading? If so, then you might have notions about making large sums of money overnight using some kind of push button Forex robot, or a secret strategy that almost nobody else knows about.

In reality, those type of things don’t really work. If you want to make money at Forex, then you better be prepared to put in some ground work and be in it for the long haul.

Not many people get rich overnight, only those that get lucky with the lottery. Using proven Forex day trading strategies is the best way to make consistent profits while trading in the currency markets.

Sure, they might not seem very sexy, and they even require that you put in some effort, but at the end of the day it will all be worth it.

Think about it for a second. Do you want to be your own boss so that you can work from the comfort of your own home, with the ability to set your own hours? If you do, then you should definitely read the rest of this article very carefully, as the following Forex day trading strategies is what everyday people just like you are using to create their dream lifestyles.

Simply choose the strategy that you feel most comfortable with and then stick with it. That’s the most important point, as you need to give any strategy time, so you can ultimately reap the long term profits.

Also, it’s important to understand that a good Forex day trading strategy is not the be all and end all. Sure, it’s a major factor, but there are other things you need to get right in order to become a well rounded day trader who makes consistent profits.

For example, working on controlling your emotions is a vital skill to have as a trader, because if you are always running on high emotion, then even the best Forex trading strategy in the world won’t help you.

There are many popular Forex day trading strategies that you can follow. For example, there is trend trading, range trading, breakout trading, swing trading, and news trading, to just name a few. If you search long enough, then you would come across many more.

Here is how to use a strategy to start making profits.

Choosing a strategy

The best way to choose a Forex day trading strategy is to find one that makes sense to you and also one that feels comfortable.

There is little advantage to choosing a strategy that you don’t really understand, as you will be spending the majority of your time trying to work it out!

 

Which brings us to a major point: find a Trading Strategy that is simple to use and implement. Anybody who tells you that trading Forex is complicated is lying, which is why you only need a simple strategy that focuses on basic elements to be successful.

Stick with it

When you choose one of the Forex day trading strategies to follow, it’s essential to stick with it for a certain amount of time.

It’s no good using it for a few days and then deciding the system doesn’t work. You need at least a month to give any strategy a fair roll of the dice, maybe even a few months.

Many beginners to the Forex markets get distracted much too easily, which can only be described as “shiny object syndrome.” The main problem with this is that they never stick with anything long enough to see positive results, which leads to them getting frustrated.

Paper trade

How to use Forex Day Trading Strategies to Profit!

If you are new to the world of day trading, and you still feel a bit uncomfortable with the thought of risking money, then you should consider testing out different strategies by way of paper trading.

This way, you get the benefits of seeing if a particular strategy is right for you, while not having the burden of putting any of your own money on the line.

Also, it’s been said that the best way to trade in the markets is with no emotional attachment at all, and what better way to learn how to do this than with zero money on the line.

In order to paper trade, you can get a demo account with one of the Forex brokers or software programs, or you can simply use a pen and paper to keep track of the trades that you make.

Make adjustments

Once you have followed a Forex day trading strategy for a certain amount of time, then you will basically come to a point where you have two options; either you can drop the strategy altogether, or you can make adjustments.

No strategy is perfect, and traders are constantly making tweaks and adjustments to make everything more efficient, and most importantly, more profitable. If you adopt this philosophy of constant adjustments, then your Forex income will continue to grow year after year.

Conclusion

If you read enough books and blogs, then you will probably come across hundreds of different Forex day trading strategies.

Ultimately, it’s not going to do you any favours to try and learn every single one, and instead it’s a much better idea to just stick with one strategy for a few months.

Also, it’s worth noting that you shouldn’t be afraid to adapt your own individual style to the Forex day trading strategy that you decide to follow. This is what all successful traders do over time as they gain experience, and what you will end up with is your own unique successful system that favours your strong points.

As mentioned previously, it’s important to spend time focusing on other areas away from your Forex day trading strategy. Things such as learning how to use software, controlling your emotions, and finding the right broker, are all equally important, and will have a major impact on the amount of money you end up making as a day trader.

Day Trading Failure Here are the Most Common Day Trading Mistakes

Day Trading Failure? Here are the Most Common Day Trading Mistakes

No matter what business you’re in, you will always make mistakes. In fact, making mistakes is usually a good thing, as it’s how you learn so that your business can move forward. However, if you are currently experiencing day trading failure and you don’t know why, then there is a good chance that you are making the same mistakes over and over again.

Sometimes, it can be hard to spot these mistakes yourself, especially when you get emotionally involved in your trades, which is why an extra pair of eyes from somebody who is outside of your day trading business can be beneficial to identify the mistakes you are making.

One way to do this is to find a mentor. Getting a day trading mentor is not actually that hard, as there are many experienced traders who are more than happy to lend their expert knowledge and advice to your business.

Below are some of the most common day trading mistakes that keep people in a vicious cycle of failure:

Not being serious enough

One way to ensure day trading failure is to not treat your business seriously enough. In other words, if you want to make large profits then you should stop treating trading like it’s a hobby.

Many people make this mistake, mainly because day trading is something that is done from home, and therefore it’s all to easy to slip into bad habits and become too lazy.

In order to rectify this situation, you need to set aside a certain amount of hours every day to work on your day trading business, and then stick to this schedule religiously. It might be tempting to just want to lie in bed for half the day or go play a round of golf, but if you do this type of thing too often then it will end up hurting your business.

Also, it is a good idea to set out a day trading plan, which clearly defines your long term and short term goals, and has targets for each day, week and month. Once you do this it’s easy to see if you are on track and constantly moving the business forward.

Being too reactive

Another big day trading mistake is the tendency to move into reactive mode far too often. As any elite day trader will tell you, success in this game comes from being in control at all times. What this means is that you should have a day trading plan and a strategy, and then everything you do should be in relation to those two things.

If you find yourself constantly going away from what you’re supposed to be doing, whether it’s reacting to news stories or trying to find “hot tips,” then you are going into reactive mode where outside influences are constantly controlling what you do.

Instead, make sure that you have a daily to do list, with tasks that are all related to your current day trading strategy. This ensures that you stay firmly on course towards your goals, and don’t get sidetracked by shiny objects.

Being over confiden

Day Trading Failure Here are the Most Common Day Trading Mistakes

One of the main reasons why people experience day trading failure, is because they become too confident in their trading plan, and their own abilities.

Sure, it’s a good thing to have confidence in yourself, and to believe that you have the knowledge and skills necessary to reach your goals, but problems start to arise when that confidence starts to get out of control.

If you currently feel like you can do no wrong and that everything you touch will turn to gold, then you are probably approaching day trading with too much confidence, and it will almost certainly end up being your downfall.

Over confidence leads to bad decisions, mainly due to the fact that the person starts entering trades without weighing up all of the facts first.

In order to be a successful day trader who profits consistently, it’s important to get a complete overview of any trade you are about to enter, and to seriously consider what might happen if things go wrong.

Not having enough capital

Many traders make the big mistake of not having enough capital in their day trading account balance. Worse yet, they then start to trade with a high percentage of the capital on a single trade, which means they are always in a position where they can’t afford to lose.

Unfortunately, this way of trading never works because eventually they do lose, and it’s often crippling.

Ideally, you never want to risk more than a few percentage points of your entire balance on any one trade. This gives you a large margin for error and means that you can afford to have a few bad trades in a row.

As a day trading mentor would tell you, this game is all about the long term strategy, and you need to have the account balance to reflect that. It can take a while for your strategy to gain momentum, and in the meantime you will need the funds to cover any losses.

Being honest

Lastly, if you are currently experiencing day trading failure, then there is a good chance that you are just not being honest enough with yourself.

You need to honest about every single area of your business: Is my strategy working the way it should be? Am I doing all that I can? What can I learn from my mistakes? Am I putting enough hours into studying the markets and tweaking my day trading plan?

Once you start to become completely honest with yourself, then you are finally in a position to take full responsibility for the state of your business and for any day trading mistakes you have made. Many traders like to blame outside influences for their shortcomings, but ultimately the buck has to stop with you. If you are the captain of the ship, then you are the only person with the power to steer your ship out of rough waters.