Today, there are many strategies for day trading on Forex, and most of them are very popular, because in the long run they make good profits with fairly low risks.
Day strategies have a high level of conservatism, because there are many opportunities to open positions, as well as enough time to make decisions not only about entering, but also about leaving the market. Due to this, there is no need for a long stay at the monitor screen, it is possible to analyze for the future, minimize losses by closing in a small minus unprofitable positions and get impressive profits due to long retention of profitable transactions.
Forex Strategy Benefits for Daily Charts
A variety of Forex strategies for trading on daily charts today is extremely wide, all of them involve the use of both fundamental analysis data and technical indicators in various combinations. At the same time, a large selection of strategies in itself is a big plus, since it allows each trader to choose the optimal solution to suit his needs.
Another advantage of trading on daily charts is the ability to open trades strictly in line with the trend and make impressive profits. The fact is that, on average, the trend on daily charts changes two or three times a year, i.e. this happens quite rarely, and even without rigorous technical analysis, it is possible to determine the direction of price movement and its pivot point.
The main data that affect the course of prices on daily charts are political and economic events around the world, which affect one of the components of the currency pair and are the main factor in the price change. Tracking events and having the opportunity to analyze them allows you to successfully trade in the market even without the use of a large number of serious indicators. This makes daily trading more reliable and profitable compared to that on four-hour, hourly and, especially, minute charts.
When are daily forex strategies not working?
Daily Forex strategies work almost always, the main thing is to know how to use them and be psychologically prepared for a long-term retention of the transaction. The fact is that the maximum profit on daily charts can be obtained by holding a position during the week, month, and sometimes a longer period of time.
Not all traders are psychologically ready for this, because they either want to quickly take profits, or fear losses when the price starts to move in the wrong direction. As a result, profits are minimal, and possible losses, on the contrary, are very impressive. Taking this into account, it should be said that the main difficulty in trading on daily charts is not even conducting a fundamental or technical analysis, but psychological restraint and competent money management, which make it possible to make very impressive profits when trading long-term positions.