Seven Golden Rules of Forex Day Trading Strategy.

FOREX Rules for Traders working with strategy of Day Trading (Short Term Strategy). 

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What is Day Trading strategy on the Foreign Exchange Market?

We represent to you some rules of Day trading Forex strategy for beginner and professional Forex traders. This strategy of Foreign exchange Market realize by trading in short term period, around no more than one trading day. Usually traders operations by Day Trading strategies take some hours.

Forex Day Trading strategy is aggressive style of earning money in short term period. In working hours traders are opening a lot of orders in different or same currency pair.

For example Day Trader can open some orders on the EUR/USD and at the same time open orders in the another pair.

Day Trading strategy take from traders requires careful attention. During working hours traders all time must check changing market conditions such as signals from technical indicators of Foreign exchange Market and financial news. For working on this strategy Day traders usually use time frame in the trading terminal one minute, five minutes, fifteen minutes, and seldom - one hour. Generally Day Trading in The Forex realize fixing of profit on the end of trading day, usually all open orders close at end of trading session and orders open at the beginning of the next trading session.  But Foreign Exchange Market work almost 24/7 except weekend, when value of trading operations too low. That means, what some opening positions of Day Traders can be completed after some trading days. This is true if open positions will be profitable in this period.

In one Trading day DayTrader can open and close ten-twenty orders on the different currency pair.  Needs to control all movement on the favorite currency pair, and recalculate and reanalysis this movements.

By our opinion for Day Trading Strategies on the Foreign Exchange Market should be use next indicators of technical analysis: Moving Averages in small update period, Levels of Fibonacci with waves theory of Elliot on the small time-frames from trading terminal, Fractals and custom indicator ZIG-ZAG for understanding all movements except noise.

7 Forex Rules during Day Trading:

•  Rule 1. Do not open FOREX transaction during of closing the trading session. 
  
  Do not open the position during of closing the trading session, when the pair took their distance-session, for the currency pair Euro to US Dollar is the distance of the order of 100-150 pips. Do not open the transaction if the distance was overcome. We all know that Charts of Foreign Exchange Market are moving in the vibrations. And usually in one trading session charts will be move in one direction, but on the another trading session its will be move in the backward direction, its happen because after strong trend needs take some correction for continue first movement. We can give you our advice: try to trade through one trading sessions you can catch same direction.

• Rule 2. Do not trade in the backward direction during trend. Do not trade in the backward direction during strong trend, if your order was closed by stop loss. Solution If we see strong movements, but our position was closed by stop loss, try to open same position after created fractals from correction this strong movements. All time during strong trend open orders only from created correction fractals.

• Rule 3. Try to use transactions only during one trading session. Use this rule help more traders save money and close position with profit before changing situation of movement of currency pair. Start session - open order, close session - close order. 

• Rule 4. Do not trade if Moving Averages crossed chart of our working currency pair. If moving averages with small period begin to cross chart of Currency pair 

• Rule 5. During the Flat situation on the Chart of currency pair try open transaction in depth of horizontal channel. Flat on the Foreign Exchange Market usually horizontal or small sloping channel with same fractals. So, flat on the Forex chart like a aisle. 

• Rule 6. Do not install stop loss more than session distance, that took currency pair. This rule is true for Tale Profit on the Day Trading Strategies. 



Day Trading - is short term trading system on the Financial markets. Example of open order from upward trend on the EUR/USD

•  Rule 7. Open order only from third wave. In the end. During use Day Trading Forex strategy open transactions only in the third wave by Elliot and you will take profit stably.

Independent FOREX Research is a personal informational educational blog all about the foreign exchange market.

Tags: Forex strategies, Day Trading, Short term strategies, Rules of Forex Strategies

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