Intraday Trading: Secrets of Success
Greetings to all visitors tradelikeapro.ru. Today we will talk about such a difficult topic as intraday forex trading. The video lesson below is literally filled with tips and tricks that can seriously improve your intraday trading successes. And although technically this article belongs to the Price Action rubric, the tips presented will be useful to any short-term trader. In general, watch everyone 🙂
Do not trade below H1
The first tip relates specifically to intraday trading on Price Action setups. The fact is that the very idea of reflecting the actions of market players through Japanese candles loses its meaning on small timeframes. Those. if you try to trade on PA, say, on M5, then this will not be trading on Price Action, but trading at random. Therefore, you should not fall below hourly charts when working with PA patterns.
Do not chase the number of transactions. Select the most obvious setups.
You have opened the chart. Look at him. There are no setups. You enlarge the picture, change the timeframes, are looking for at least some reason to enter the market.
Familiar situation? The fact is that, following the stereotype “intraday trading is many, many transactions, almost every minute”, you really want to open a position, and then another and another. Only this is not trading the system, but trading at random. What will it lead to? I think you guessed it.
Enter only when you see a clear, “like in books” setup. If you begin to look out for something, to guess, to search for entrances, it is not clear on the basis of what, then STOP SUFFERING FIGS. Throw a coin and finally enter the market, because you want it that way))
Joking as a joke, but again I repeat: enter the market only when you see obvious setups. Misty, incomprehensible situations just ignore - wait for clear signals.
Limit the number of instruments traded
Intraday trading requires a quick and clear action from a trader. There is no time for much thought. Therefore, a large number of traded pairs will only confuse and distract you. You do not need 20 charts for intraday trading - limit your portfolio to two or three instruments, no more. At first, I would generally advise trading no more than one pair.
Risk no more than 1% of the deposit in each transaction
Yes, 1% is very small. Yes, I want to cut a lot of dough right away, preferably with a guarantee, but try to understand the meaning of this advice. With intraday trading, the psychological burden is very high. It is very easy to get angry over a couple of losing trades and start making more and more mistakes trying to recoup. It is very, very difficult to stay calm, risking 5-10% of the deposit in each transaction, because inside the day we open deals quite often and there is simply no time to calm down thoughtfully and without emotions.
Therefore, the best option is to risk only a small part of your capital. So that in the event of a series of losses, you remain morally balanced and can continue to trade, so that later these same losses can be restored. At first, try to set yourself the goal of not earning a lot, but earning stably.
To calculate the lot in accordance with the specified risk percentage, you can use the Master Money Bot indicator.
Follow the news
The release of important economic data can easily turn the market in any direction. And if during trading on daily charts this factor is leveled out by the timeframe value, then in intraday trading it is necessary to pay attention to the news release. I constantly say this in reviews of Forex strategies: do not trade half an hour before and after the news release. If you see some kind of Price Action setup, but after half an hour the news comes out - wait. After the news, if the market moves in the direction indicated by the setup, you can enter the market. But not before the release of any news.
Read more about the importance of news, where to watch their schedule, etc. described in the video at the beginning of the article.
Watch out for a higher time frame
Forex charts of the same currency pair can be completely different. It all depends on the timeframe, on the selected time scale.
And if you trade for example on H1, then it will be quite out of place to glance at a higher timeframe - H4. But this also needs to be done wisely, given the stage of what is happening on the higher timeframe. Say, if you see a big trend up on H4, but at the moment there is a correction, so why not open sales on a lower scale of H1? After all, the correction may be delayed, and if we limit ourselves only to purchases, we will lose profitable trades.
Limit your profit / loss in 1 day
First, never set yourself goals: earn N points in a day. This leads to the search for nonexistent entry points, a feeling of anger at the market, and in the end there are just quiet days when it is difficult to extract your N points even in theory, not to mention practice ...
I’m talking about setting limits. A kind of total take profit and stop loss for transactions within one day. At first glance, this may seem silly, but this approach helps a lot in maintaining discipline, which is so important in intraday trading.
Let me give you an example: you have decided that your profit / loss limit for 1 day will be 70 points. And as soon as your total profit on transactions for 1 day reaches 70 points, you close the platform and forget about the market until the next day. The same thing with losses: as soon as the amount of losses on transactions becomes equal to 70 points, you exit the trading terminal and do not return until tomorrow.
This will help to avoid opening silly deals when you are driven by a desire to recoup and when you are seized by euphoria from a series of successful positions.
The end of the Asian and the beginning of the European sessions is a good time for reversal setups
We all know that every day candle has a body, an upper and lower shadow. Ideally, our task is to catch most of the body of the candle, i.e. catch the trend of the current day. But before the price moves in the direction of the body, a shadow will form at the candle. And just after the formation of the shadow, we get a good moment to enter the market.
And shadow formation ends very often at the end of the Asian / beginning of European trading sessions. Accordingly, reversal setups appearing at this time have a high profit potential.
This advice is explained more clearly in the video tutorial at the beginning of the post.
Consider the daily volatility of a traded pair
Suppose you know that the average distance from the High point to the Low point of the daily candlestick for the pair X is 100 points. If your profit in a transaction opened during intraday trading approaches 70-80 points, it would be logical to close the position, because traffic potential is almost exhausted. Similarly, if the price has already followed the trend of 70 points and a new setup appears in the same direction, it would be pretty stupid to open a new deal, because the price has almost “run out of gas”.
I think it is quite obvious that knowing the average daily volatility of a currency pair can be very useful. But where to get this data? They are provided by the website forexticket.ru. How to work with this service is discussed in the video tutorial at the beginning of this post.
Do not leave positions the next day
A blunder for beginners is to leave open positions at night. Well, think for yourself: why should the setup you found inside the day have to remain in force tomorrow? The market has long forgotten about it. Traders got a bunch of new data, signals, someone opened positions on higher timeframes and so on. So why should your position remain valid?
Leaving open positions at night, you just play roulette, try your luck. And luck on forex is not the place. Therefore, in order to avoid unnecessary losses, if at the end of the American session you have open positions, it does not matter in plus or minus, then just close them.