Day Trading techniques and strategies


There are different techniques to operate Intradiay. Some are based on economic news releases, while others are based on the opening of the stock market.

Essentials for the Intraday Trader

  1. The first thing that a beginner intraday trader should detect is his profile as an investor, that is, his aversion or appetite for risk.

2. Regardless of the risk profile of the intraday trader, he must make sure to test his strategy in a risk-free environment, such as in a demo trading account, a Trading or Backtesting simulator.

3. The fundamental tool of the intraday trader is technical analysis

4. The factors that you must master and that should not be missing in the intraday strategy are volatility and liquidity

→ Volatility is the magnitude of market movements. In short-term trading, strong volatility is mandatory. This essentially reduces the selection of instruments to the major currency pairs and some cross pairs, depending on the trading sessions.

→ Liquidity is also important. A long-term trader can afford to give up 10 pips, but a short-term trader cannot as those 10 pips can be the full profit. Of course, this precision comes from the trader’s ability to trade in the short term, but also from the liquidity of the market.

If there is little liquidity in the market, orders are not always executed at the desired price. This again encourages intraday traders to trade certain instruments and only for specific periods.

Intraday Trading Strategy – Trend

Trend following in trading is the simplest and least risky strategy for an inexperienced trader. The trader seeks to find fairly strong movements with large volumes and follow the trend. As the saying goes: the trend is your friend.

However, this trend also requires great discipline and control to identify the best time to enter or exit the market.

Day trading is described as the fastest way to make money on the stock market. What is not mentioned enough is that it is a complicated type of trading, difficult to master and that carries a high risk.

Intraday Trading Strategy – Counter-trend

Trading against the trend is probably one of the worst strategies to adopt if you are an inexperienced trader.

This technique consists of anticipating a change in trend and taking advantage of the price movement to make a profit.

A countertrend trader must not only be able to identify temporary changes in course direction with high precision, but also to predict its strength. Although it is not impossible, it requires a lot of experience and mastery of trading based on price action.

Intraday Trading Strategy – Economic Calendar

There are many other intraday strategies. Despite their wide variety, most of them follow a similar process and consider cheap ads.

Therefore, it is important to make sure you know when important economic news is released, to avoid unpleasant surprises or unexpected ups and downs!

Analyzing the economic calendar will offer you the following information:

  • Economic news related to Forex pairs directly or indirectly.
  • The exact posting times to not trade during the uncertainty
  • Trading with the economic calendar helps you to know the long-term trend and operate accordingly and to know the time of publication of the news and avoid trading until the market discounts it.

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