Another important vocabulary that the author believes you will encounter in forex trading is day trade. For more insight I would like to take readers to explore the term day trade, both the meaning and the method of calling day correctly.
The term Day Trade comes from the word Intraday Trading. It is a strategy. Trading strategies Which has different characteristics Trading strategies Will be consistent with the daily life of the trader The trading strategy can determine the profit and loss. It defines the styles of traders that will develop in the future. Therefore, understanding the term affects the trading style. And ways of our own development clearly
means trading a complete forex in one day. Which means opening an order buy or sell and closing the order within one day Usually, day trade. This day trade is often referred to as Short-term speculation Which, if it is , day trading of Thai stocks may require special care 1
Advantages of day trade
Day Trade strategies are one of the strategies that institutional traders like to use in the Sector of a Trading Unit called Proprietary Trader. Most Day Trading strategies are used without holding positions overnight. Which will have to face the risk of trading to increase liquidity in the market. It is also consistent with the main concepts of forecasting that forecasting in that trade Will not use predictions in the long run Because it will cause the discrepancy of the forecasting results to be high, the strategy will respond to this point.
Of course, there are many people who choose to trade forex using day trade trading methods. Day trading, if talking about its advantages We can summarize as follows:
1. Day trade allows you to make profits as quickly as possible.
Because it means you don’t have to wait over the previous day and then close the order to make a profit Of course, the risk of currency fluctuations. Or economic events may cause conditions that cause us to be affected
2.day trade Day trading helps to reduce the risk of currency fluctuations.
As mentioned in the above article that If we allow more time to trade We may encounter situations of currency fluctuations. There are many cases that If we choose long-term trading As a result, you are exposed to the risk of making profits and becoming losses. Or may even have to clear the port at all
3. Day Trade does not have to face additional costs.
The extra cost that we will have to pay is Swap. The extra cost of holding the position overnight is the loss of swap. Does not mean that we will increase profits If the strategy is a strategy that is not profitable. It will increase the loss itself.
Strategies that are suitable for playing
If it is forex trading, choosing TF1m and TF1h at the same time in that currency pair Seems to be something that is very popular. Which indicators (commonly used) in this case, such as CPI v 1.5 or Pinbar, etc. (you can find for download on the Internet), which these two signals will tell the point of buying or selling very accurately. As well as reducing errors in indicators as well