Intraday Trading: Secrets of Success

Welcome to all visitors of our site. Today we will talk about such a difficult topic as intraday trading in forex. The video lesson below is literally packed with tips and recommendations that can seriously improve your success in day trading. And although technically this article belongs to the Price Action section, the advice presented will be useful to any short-term trader. In general, everyone should watch :)

The first tip applies specifically to intraday trading with Price Action setups. The fact is that the very idea of reflecting the actions of market participants through Japanese candles loses its meaning on small timeframes. That is, if you try to trade PA, say, on M5, then it will no longer be Price Action trading, but "hit-or-miss" trading. Therefore, you should not go below hourly charts when working with PA patterns.

You opened a chart. You look at it. There are no setups. You zoom in, change timeframes, and look for at least some grounds to enter the market.
Sound familiar? The point is that, following the stereotype that "intraday trading means lots and lots of trades, almost every minute," you really want to open a position, and then another and another. But that is no longer system trading, it is random trading. What will it lead to? I think you can guess for yourself.

Enter only when you see a clear setup, "just like in the books." If you start trying to make something out, guessing, or looking for entries on no clear basis, then STOP MESSING AROUND. Flip a coin and finally enter the market, since you want it so badly))
Jokes aside, I will repeat once again: enter the market only when you see obvious setups. Simply ignore murky, unclear situations and wait for clear signals.

Intraday trading requires quick and precise actions from a trader. There is no time for long deliberation. Therefore, a large number of traded pairs will only confuse and distract you. You do not need 20 charts for intraday trading; limit your portfolio to two or three instruments, no more. At the very beginning, I would even advise trading no more than one pair.

Yes, 1% is very little. Yes, you want to make a lot of money at once, preferably with a guarantee, but try to understand the meaning of this advice. With intraday trading, the psychological load is very high. It is very easy to fall into a state of anger because of a couple of losing trades and start making more and more mistakes, trying to win it back. It is very, very hard to stay calm when risking 5-10% of your deposit on each trade, because within the day we open trades quite often, and there is simply no time to calm down and assess the situation thoughtfully and without emotion.
Therefore, the best option is to risk only a small part of your capital. So that in case of a series of losses, you remain mentally balanced and can continue trading in order to recover those very losses later. At first, try to set yourself the goal not of making a lot, but of earning consistently.

To calculate the lot according to the specified risk percentage, you can use the Master Money Bot indicator.

The release of important economic data can easily reverse the market in any direction. And if when trading on daily charts this factor is smoothed out by the size of the timeframe, then in intraday trading it is necessary to pay attention to news releases. I constantly say this in forex strategy reviews: do not trade for half an hour before and after the news release. If you see some kind of Price Action setup, but the news comes out in half an hour, wait. After the news is released, if the market moves in the direction indicated by the setup, you can enter the market. But by no means before this or that news release.

More details about the degree of importance of news, where to view its schedule, and so on are explained in the video at the beginning of the article.

Forex charts of the same currency pair can be completely different. It all depends on the timeframe, on the selected time scale.

And if you trade, for example, on H1, then it would be quite useful to glance at a higher timeframe, H4. But this should also be done wisely, taking into account the stage of what is happening on the higher timeframe. Say, if you see a big uptrend on H4, but at the moment a correction is underway, then why not open sells on the lower H1 scale? After all, the correction may drag on, and by limiting ourselves only to buys, we will lose profitable trades.

First, never set yourself goals such as making N points per day. This leads to searching for nonexistent entry points, a feeling of anger at the market, and in the end there are simply quiet days when extracting your N points is difficult even in theory, not to mention in practice...
I am talking specifically about setting limits. A kind of total take-profit and stop-loss for trades within one day. At first glance this may seem silly, but this approach helps a lot in maintaining discipline, which is so important in intraday trading.
For example: you decide that your profit / loss limit for 1 day will be 70 points. And as soon as your total profit on trades for 1 day reaches 70 points, you close the platform and forget about the market until the next day. The same goes for losses: as soon as the total losses on trades reach 70 points, you leave the trading terminal and do not come back until tomorrow.

This will help avoid opening foolish trades when you are driven by the desire to win it back and when you are overcome by euphoria from a series of successful positions.

We all know that every daily candle has a body, an upper shadow, and a lower shadow. Ideally, our task is to catch most of the candle body, that is, to catch the trend of the current day. But before the price moves in the direction of the body, a shadow will form on the candle. And it is precisely after the shadow finishes forming that we get a good moment to enter the market.

And the formation of the shadow very often ends at the end of the Asian / beginning of the European trading sessions. Accordingly, reversal setups that appear at this time have a high profit potential.

This advice is explained more clearly in the video lesson at the beginning of the post.

Suppose you know that the average distance from the High point to the Low point of a daily candle for pair X is 100 points. If your profit in some trade opened during intraday trading is approaching 70-80 points, it would be quite logical to close the position, since the movement potential is almost exhausted. Similarly, if the price has already moved 70 points along the trend and a new setup appears in the same direction, it would be rather foolish to open a new trade, because the price has almost "run out of gas".

I think it is quite obvious that knowledge of the average daily volatility of a currency pair can be very useful. But where can you get this data? The website forexticket.ru provides it. How to work with this service is covered in the video lesson at the beginning of this post.

A crude mistake beginners make is leaving open positions overnight. Just think for yourself: why should a setup you found intraday retain its strength tomorrow at all? The market forgot about it long ago. Traders have gotten a bunch of new data, signals, some have opened positions on higher timeframes, and so on. So why should your position remain valid?

By leaving open positions overnight, you are simply playing roulette, testing your luck. And luck has no place in Forex. Therefore, to avoid unnecessary losses, if you have open positions by the end of the American session, no matter whether they are in profit or at a loss, just close them.

Respectfully, Ivan Petrov
Tlap.io