Forex is one of the largest markets in the world and the amount of investment in this market is growing day by day. To trade in the Forex market, we must have a strategy as the backbone of smart online trading. One of the Forex strategy families is intraday strategies. Forex intraday strategies consist of a series of methods to open and close positions within the same day of operations. People who use this approach usually have a high risk tolerance, since the market can experience considerable movements in shorter time periods. Forex strategies in Forex use risky techniques to take advantage of price fluctuations before the end of the trading session. If you are a person who prefers relatively safe investment vehicles, intraday trading is definitely not for you.
The rules of intraday trading in Forex are similar to those of other approaches, although they must be applied in a more strict way. This means that while in major temporalities you can afford some mistakes, when doing intraday trading you can’t do it. For this reason, very short-term operations are considerably more risky than those carried out with much longer terms.
Intraday trading strategies
The two fundamental aspects of an intraday Forex strategy are the volatility and liquidity of the market. In short terms, it would be impossible to obtain profits if the prices do not show significant fluctuations nor there is sufficient liquidity at the time of opening the operations. Anyway you can get more possible strategies by reading online reviews.
Volatility refers to the intensity of price movements. If you want to generate profits in intraday trading, it is important that the quotes show considerable movements. The volatility of Forex depends on several factors, including currency pairs (major, minor, exotic or crossed), the days of the week, and the months of the year, among others. As for intraday trading, you should bear in mind that some hours of the day are much more volatile than others.