to be effected easier-to-obtain moves and more opportunities to realize a small profit. Read about leverage and margin and see if your current trading performance can sustain the costs involved in taking multiple trades in a day. Be sure your targets are at least double your spread so that you can account for the times the market moves against you. The key is to learn the strengths and weaknesses of day trading and adjust your expectations and strategies accordingly.
This goes for any type of trading, but since you are making so many trades within a day it is especially important that you are sticking to risk management practices. It is not for those looking to make big wins all the time, but rather for those who like raking in small profits over the long run to make an overall profit. Its possible as long as there is sufficient price volatility.
Trading for short periods also means that youll make money AND have time for other pursuits like sports, hobbies, and social liferight? YOU must always stick TO your trading system rules! The breakout points will be your entry levels. This way, they receive a small profit. Next, we use simple moving averages to help us identify a new trend as early as possible. Sometimes you may get triggered in one direction only to find that you get stopped out because the price quickly reverses in the other direction.
For this system, we are willing to risk 100 pips on each trade. If you want to see some examples of some slightly more complicated forex trading systems, take a look at Hucks hlhb system or Pip Surfers Cowabunga system. This allows you take advantage of more trading opportunities because you will be triggered either way.