Profitable Tips for Forex Day Trading

Profitable Tips
for
Forex Day Trading

By
www.TheForexNittyGritty.com

So you have decided to trade
foreign currencies. You will
have to decide which market
in which to trade, which will in
turn determine what hours of
the day you work at the trade
station.

Which market you trade
in, London, New York, or
Tokyo, will also affect which
currencies you choose to trade.
You will need to choose hardware
and software and develop the
necessary skill sets in order to
function as an online currency
trader.

You will need to learn how to
do fundamental analysis of
Forex pairs as well. With this
in mind here are a few
profitable tips for Forex day
trading.


Choice
of Trading Pair


The first of our profitable tips
for Forex day trading has to
do with picking a currency pair
to trade. Traders make their
money because of Forex
market volatility.


Forex traders control their risk
because they understand the
fundamentals that drive each
of the currencies that they
trade.


Traders commonly choose
currencies that trade in high
volume and liquidity in order to
most effectively use technical
analysis tools such as
candlestick patterns in Forex
trading.

Majors
versus Minors


The next of our profitable tips for
Forex day trading relates to
picking a major or minor Forex
pair to trade. Technical analysis
of major Forex currencies is
commonly more accurate than for
minor currencies.


This is because of the high
trading volume and liquidity of
major currencies. Minor
currencies can often be very
volatile but they can also be very
unpredictable. In trading minor
currencies one should be well
versed in their fundamentals.

This may even require that
you are a native to the country
involved or live and do
business there in order to
understand the various factors
that drive the currency.


Fundamentals


When trading two minor
currencies or trading a major
versus in minor Forex currency,
fundamentals are of upmost
importance. This may be the
most important of our profitable
tips for Forex day trading.


Although the major currency
may trade in high volume it
will trade in substantially lower
volume versus any of the
minor currencies. Thus there
may be frequent gaps in
trading such a currency pair.

Trading gaps and anticipating
them can be quite profitable if
you are well verses in
fundamentals but can be risky
as well.


Those trading a major versus
minor currency will do well to
trade in small amounts until they
are comfortable and successful in
predicting swing in currency
prices, especially as relates to
the minor currency.


Technical Analysis


Technical analysis is a
mainstay of Forex day trading.
The last of our profitable tips
for Forex day trading has to
do with a tried and true
approach to technical analysis
of Forex pairs.

Centuries ago Japanese rice
traders discovered that price
patterns repeat themselves.
Using this knowledge they
developed a set of signals that
help traders predict future price
movement solely based on
previous price movement.

These clear and easy to read
signals are in use today in trading
stocks, commodities, and Forex.
Study Japanese Candlesticks
and learn to use the Doji, Bearish
Engulfing Pattern, or Three Black
Crows to profit from trading Forex
currencies.

For more insights and useful
information about Forex visit

Profitable Tips for Forex Day Trading

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