In this article, here are some day trading systems. To do this, let’s decide what it is and why they were created. For many years, traders worked and created a variety of trading methods. This method is based on concepts such as observation and analysis. With its help, the trader knows at what exact moment you need to sell or buy currency.
Forex Day Trading System Background
The era of information technology has greatly changed the forex currency trading. Today, everyone can trade directly from home, thanks to the Internet, margin trading systems and electronic money.
How to get income from day trading?
Even if you just recently began to study the Forex market and become its participant, you should be aware of such a concept as leverage. This option allows the trader to speculate in other people’s money and receive large profits. Typically, the amount of leverage is quite large, and this gives an important advantage.
Best Forex Day Trading System
Remember: Forex day trading strategies and systems are different concepts. The system selects the direction for trading, and the strategy is, you can say, a detailed instruction for the transaction. The strategy includes the readings of various indicators, time frames, points of opening and closing of the transaction. So, let’s look at the most used Forex day trading systems.
- Scalping. The essence of the scalping system is that by making transactions, you will receive a small income. This is because of the point that as soon as the price increases by only a couple of points, the system automatically closes your transaction by selling currency.
- Attenuation. This system acts in reverse order to the scalping system. For example, a couple of minutes ago, the price increased by several points, after which the system will try to return it to its original level.
- Daily U-turns. The goal of this model is the same as in the attenuation system: making a profit by trying to keep the price at the same level. You buy or sell currency in the low period of the day and close your position in high. That is, asset price volatility will help you make a profit on every trade.
- Impulse. In this kind of Forex day trading system, trading use to take place after receiving any international news, or after a transaction of a very large size. Finish your trade at the moment when the volume decreases and a bearish candle appears.
Different Forex day trading systems use the same tools as other types of trading. The only difference is what terms and approaches you apply. Day trading involves winning not in price on one transaction, but in a large number of low-profit transactions.