5 Day Trading Strategy Secrets Every Beginner Should Know

Day trading refers to the market position held for a short period. Typically, a trader will buy and sell these positions within a day. In the 1990s, the concept got a bad reputation after numerous day trading beginners bought into the idea that the best day trading strategy means working in their pajamas. The idea behind this thinking is that the day traders would make millions with no effort and very little knowledge. This turned out to be a bad idea.

However, day trading is not as complicated once you have committed yourself to learning simple, rules-based day trading strategies for anticipating movements in the market. Listed below are five secrets that every day trading beginner should internalize before stepping into the arena.

Identifying Drastically Imbalanced Supply and Demand Scenarios

Like everything else in life, financial markets are prone to supplier near exhaustion while there are willing buyers meaning that the price is about to go higher. When supply is in excess with no buyers, prices are set to go down. At Forex Trading Value, students learn how to identify these turning points on the price chart. You can also learn from studying a few historical examples to sharpen your entry point identification skills.

Setting Price Targets Before Jumping In

If you are looking to buy into a long position, it is critical that you decide in advance the amount of profit acceptable and set up a stop-loss level should the trade work against you. Sticking by your decisions will help limit potential loss and keep you from getting overly greedy should prices spike to untenable levels. The only exception to this rule is in a strong market where it is acceptable to set new profit goals and stop-loss levels after you have achieved your initial targets.

Insist on Risk-Reward Ratios of 3:1

While setting your targets, it is critical that your risk-reward ratio is at least 3:1. At Forex Trading Value, the teachers will teach you how this strategy allows you to lose small while winning big. Adoption of this day trading strategy will also give you a chance to come out ahead even when you experience losses in other trades. In fact, as you gain experience, 5:1 and higher risk-reward ratios will be attainable.

As paradoxical as it sounds, one of the best day trading strategies that work is patience. Most successful day traders do not trade every single day. Yes, they might be in the market and at their computers, but if there are no opportunities meeting their criteria, they do not execute any trade on that day. This is a much better strategy than battling your best judgment out of a desire to “do something.”

Discipline means planning your trades, then trading your plans. At Forex Trading Value, students learn how to execute live trades under senior teachers until making the right decisions is second nature. If trading on your own, greed will keep you in a position for too long while fear will make you bail out too soon.

Are you ready to jump into day trading and learn the best day trading strategies for beginners? Forex Trading Value offers you a free Forex workshop that will help you learn the ins and outs of creating the best day trading strategy. For more information visit us at forextradingvault.com .