Learn forex day trading in 5 steps

 Learn forex day trading in 5 steps

forex trading profit per day
forex day trading
Forex day trading is defined as a short-term trading plan based on the process of buying and selling currency pairs on the same trading day. Traders often place forex trades each day heavily, and close those trades at the end of the trading day, as an alternative to holding their positions overnight. 

The fluctuations that occur in the price of currency pairs can give you a lot of profit opportunities especially if you are a day trader, so you will find them always looking for currency pairs with high liquidity and volatility. In the following lines, we will show you the steps of teaching forex day trading for beginners.

Forex day trading

Forex day trading is very popular among individual forex traders because it is a short term strategy. It can be a quick way to get investment returns. The trader must have plenty of time to monitor his trading charts throughout the day, and have the ability to analyze the day trading forex market. 
Forex day trading involves answering the price fluctuations of short-term currency pairs, therefore, you, my friend, must have focus, control, ability and discipline to stick to your forex trading strategy. Forex trading platforms offer you a set of special tools for trading, such as technical indicators, to help traders identify potential entry and exit points for their trades.

The main points of the topic:
  • Is forex day trading profitable?
  • How to start day trading in forex
  • What are the forex day trading rules?
  • Learn about the best indicators for day trading forex
  • What are forex day trading strategies?
  • Various forex day trading platforms
  • summary

Is forex day trading profitable?

If you are patient and focus on analyzing economic data and price charts, you will be guaranteed a profit in forex trading on the day after you have successfully traded. But you have to be careful because forex day trading is very risky. And if you are exposed to one of the risks of Forex trading, this means a huge loss in your capital. This brings us to the next paragraph.

What are the risks of day trading forex?

It is certain that forex trading in short time frames can expose you to a number of forex trading risks such as:
  1. Risks of trading currency pairs on margin in forex.
  2. It is no different with currency spread bets or CFD trades.
  3. The risks of trading on margin and to avoid it should invest a small amount, which gives you the ability to larger trading volumes. However, the larger the trading volume, the greater the risk, as my friend may end up losing more than your deposit if the stock price moves in the opposite direction.
  4. Surprising and unexpected political and news events can be a major cause of volatility in the forex markets. But during these volatile Forex market conditions, a trader can only risk one percent of his account balance on each trade.

Things that the trader must consider when forex day trading  to avoid loss
There are some things that must be taken into account to avoid losing a large amount in forex day trading , which are:

It is important to keep in mind, that the stop loss order does not guarantee that the position will be closed at the price that you will set. As during conditions of market volatility, prices always move from one level to another. Sometimes they even exceed the levels in between.

This is known as slippage. In this case, it is possible that your stop loss order will be executed at a level worse than what you have specified, which will cause you greater losses. But don't worry some forex brokers will give you guaranteed stop loss orders in order to prevent this. For a small financial cost, you are guaranteed to close your trading day at the specified price. All these things must be considered in order to profit from forex day trading.

How to start day trading in forex

  • Open a real account to start trading now or practice risk-free trading with virtual money.
  • Choose the product between bets on CFD trading against the spread.
  • Research the forex market and use forex day trading  guide to get the best tips and strategies on how to make your trades successful.
  • Maintain knowledge of technical analysis by constantly studying price charts and technical forex indicators.
  • Use premium tools to help you manage risks such as stop-loss orders, to protect your capital.

What are the forex day trading rules

If you are a forex day trader you should know your order types very well. This applies to your entry and exit from the markets. Where orders are very important because they can help you decide when to open a new position for you and maximize your potential profit, as well as close your positions to reduce your losses. If you don't know your order types well, it can slow down your trading and eventually cost you money.

You should also research a forex broker well before you start forex day trading with it because it is important that the trader is familiar with the forex brokers that are not licensed and approved by the regulatory government in the country. All brokers are subject to certain controls. In the UK, for example, a trader can check that the Forex broker of his choice is registered and authorized by the (FCA).

Learn about the best indicators for day trading forex

If a trader wants to open an account with forex brokers, he should look for a reliable forex day trading software. With this strategy, every second counts, so it is important that pricing occurs in real time and that all trades can be placed efficiently and easily.

It is well known that if a trader understands chart types and knows how to use technical indicators, this is essential when using a forex day trading strategy. And he also knows perfectly well that day trading is in a short period of time, so he will be able to make quick decisions well. The trader must also be able to read the forex charts accurately and efficiently so as not to slow down his trading. He can use the following technical indicators on his forex day trading charts:

  • Fibonacci retracement indicators
  • Simple Moving Average (SMA) Indicator
  • Bollinger Bands Indicator
  • stochastic oscillator
  • Relative Strength Indicators (RSI)

What are forex day trading strategies?

It is important for traders when learning forex day trading to be well acquainted with the different forex trading strategies when dealing with the foreign exchange market. Ideal forex trading strategies include a special form of technical analysis, fundamental analysis, or a combination of both. Today's forex traders will use this analysis to help figure out how many trades per day forex and to determine when to buy and when to sell currency pairs.

As the conditions of the forex market vary from day to day, more than one forex day trading strategy can be required, and the trader must be prepared to adapt his strategy, as in a time of rising liquidity in the market.

Forex news trading

Traders should be kept up to date with the latest news about forex day trading Knowing what is happening in the traders' markets can help them be prepared for potential forex trading decisions in advance, and plan well for their goals and strategies at the beginning of the trading day. Central bank announcements, changes in interest rates and other data releases are all very important economic indicators that can directly affect currency rates, so it is very important to follow economic news and announcements as a daily trader.

Trend trading

One of the famous ways that a trader should deal with forex day trading is trend trading. This includes looking at charts, especially longer term ones, to determine the trend. Once the general trend is established, the trader will look at the chart with a smaller time frame of all the trends moving in the same direction. The advanced trading platforms contain a large number of technical indicators and forex charting tools that can be used to help the trader identify trading trends.

Momentum Trading

Momentum trading is another popular approach from forex day trading. This approach looks for strong price movements coupled with high trading volume in movement trends. Force exchanging forex includes having the option to hang tight for the best chance to open a position.

Identifying intrusions

Breakout trading is one of the popular strategies in forex day trading, which also includes watching and waiting for big market moves, and these big market moves can happen due to related things like changes in the country's economic data. It can happen unexpectedly or after certain and expected economic announcements.

With breakout trading, traders will wait for prices to break through the significant support and resistance levels of the price, which signals the beginning of a trend. Traders will then open a position in the same direction in which they expect prices to move. Identifying and trading breakouts in forex is an effective strategy for traders who keep up to date with the news of politics and economics.

Various forex day trading platforms

Discover an award-winning forex trading platform that should offer you a wide range of technical forex indicators, forex chart types, and drawing tools, as well as have exclusive features for real forex account holders, such as forums of forex day trading and live market data.
So you must:
  • Join a business community committed to achieving your ambitions and success
  • To start with a real account
  • Start with a good offer and see how much do forex traders make a day


Forex day trading is usually seen as the means that will bring a quick return on investments, however, it is not for everyone. As there are certain things that you should consider before engaging in this trading. As with forex trading strategies, day trading forex has its risks. 

Therefore, the forex day trader must ensure that he applies the risk management tools well, the most important of which is the stop-loss order to reduce his losses.

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