12:31WHAT IS THE ADVANTAGE AND DISADVANTAGES OF INTRADAY TRADE?
WHAT IS THE ADVANTAGE AND DISADVANTAGES OF INTRADAY TRADE?
METHODS AND STYLES OF TRADE IN THE FOREX MARKET
Medium-term trading involves keeping transactions for a few days or weeks. The fundamental analysis of Forex here already plays a smaller role. Regular monthly economic reports are usually taken into account. To analyze the situation and open positions, charts from hour to day are used. The profit in the medium-term trade is several hundred points. This style of trading is considered the most comfortable, since it does not take much time, and entry points are easy to determine.
The classic definition of intraday trading is the opening and closing of transactions during the day without moving the position the next day. For this style, working timeframes are used no more than one hour. Fundamental factors are almost not important for intraday trading, except for news in the economic calendar. Intraday style implies several different strategies. Basically it's scalping, session trading and trading on the news. Depending on this, the profit can range from several points to dozens.
ADVANTAGES OF TRADE INSIDE DAY
Trading during the day, the trader fully controls the situation. The peculiarity of this trade style is that it is required to constantly search for optimal levels for opening positions. Then you need to follow the quotes for the transaction and close as necessary. A trader trading in the medium term may miss an important moment for opening a deal, and an intradayer will have time to earn dozens of points. This is especially noticeable during periods of flat or weak trend. For the medium-term trade this is a lull, and for intraday trading - daily profit. If you follow the rule of exit from the market at the end of the working day, then the possible losses will be small. It is desirable to study reliable forex forecasts for every day.
DISADVANTAGES OF THE INTRADAY METHOD
To trade within a day, the trader needs special efforts - concentration of attention, quick reaction to the events. This style of trading takes all the time, it will not work together with other work. Although modern traders facilitate the work of the opportunity to trade with handheld devices and forex charts online. The number of currency pairs for intraday trading is limited to one to three. A greater number of tracking and analyzing is simply unrealistic.
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