Day Trading Forex – Keeping it Simple…
MACD crosses, Stochastics, RSI, ADX, Bollinger Bands, and the indicator list goes on and on, and the combinations of indicators in the composition of a forex trading strategy are endless. With a seemingly endless amount of possible strategies and indicators to follow how can you day trade the forex market….simply?
Day trading the forex market is in itself a simple idea. The goal is to enter the market in a time of high volatility, and exit the market quickly with a small profit. The process is then repeated many time threw out a trading session and what was one small profit becomes in theory a large overall gain upon the close of the day.
So what are some simple ideas to keeping your forex scalping or day trading strategy’s simple. We are going to examine three crucial, yet often overlooked, and more importantly simple day drading tips that will keep things SIMPLE.
Never trade more than four pairs. Every pair, like every human has its own personality. It is crucial when day trading the fast passed forex market to know each pair you trade intimately. In addition to that it is impossible to focus on more than four pairs at the same time in this fast passed environment.
Only trade during times the market moves. The forex market moves 24 hours a day five and a half days a week. How do you know which time to pick? Historically Tuesday, Wednesday, and Thursday have the highest volume, but what time during those days or Monday and Friday for that matter. In order to day trade the forex market, pick a time when the market has high volume such as market opens, market closing times, and around news releases.
Avoid too many indicators. Remember indicators are a reflection of what the chart and in essence what the price movement has already told you. It’s ok if you want to incorporate one or two indicators or moving averages, but remember this one acronym when forex day trading.     K.I.S.S - Keep It Simple Stupid:)