As you probably already know, success in forex day trading depends entirely on how to find entry and exit points, trading psychology and risk management. Now I am going to show day trading entry exit strategy.
First, I hope to correct some misunderstanding and practice
Many beginners think they can make big profits in forex as long as identify great trade entries and exits.
I think that is completely wrong!
Veteran traders always treat trading like it is a business and run it on principles. They will use position sizing strategy, write a day trading plan, checklist and keep a journal excel.
Second, finding an entry and exit point starts with a day trading checklist
A day trading checklist can help you identify entry and exit signals. If you don't have it, you won't take your trading to the next level
Third, using forex indicators to find entries and exits
Fifth, buy the higher low and sell the lower high
These are my day trading entry and exit strategy. Next I will show how to keep a day trading journal.
At last, building a day trading track record to improve your trading performance
Many beginners just want to make extra income. They never keep a day trading journal. As a matter of fact, veteran traders believe that it provide a way to self-coach and improve on their own.
More reading Pure Risk to reward trade System - 1 to 3- Totally random entries
First, I hope to correct some misunderstanding and practice
Many beginners think they can make big profits in forex as long as identify great trade entries and exits.
I think that is completely wrong!
Veteran traders always treat trading like it is a business and run it on principles. They will use position sizing strategy, write a day trading plan, checklist and keep a journal excel.
Second, finding an entry and exit point starts with a day trading checklist
A day trading checklist can help you identify entry and exit signals. If you don't have it, you won't take your trading to the next level
- Is the daily chart an uptrend or a downtrend? I will draw a trend line to identify the major trend on the daily chart.
- Where is the support and Resistance levels on the daily chart? If you found a horizontal support and resistance line, you would use a range trading strategy.
- Is the 30 Minute chart an uptrend or downtrend? I will use the multiple time frame analysis to find the entry and exit points.
- Are there any new releases from the Dailyfx Economic Calendar? Sometimes the markets move so much after the a major news release. So, many veterans focus on the Dailyfx Economic Calendar.
- How about my leverage in forex trading? Many experienced traders use low leverage. Personally, I use a leverage of 1:10.
- Should I enter this Forex trade? The Forex trading checklist is like a simple day trading plan. If you wanted to succeed in forex, you would build a Forex trading checklist.
- Moving average crossover strategy
- MACD trading system
- RSI indicator trading system
- ADX trading system
Fifth, buy the higher low and sell the lower high
Sixth, using grid trading strategy to identify the entries and exits
- I trade GBPUSD on the 4 hour chart
- My grid spacing is 47 pips
- My grid lot size is 0.01 lots
- My take profit is 47 pips and can't set stop loss order.
- I place buy limit orders near support lines
- I place sell limit orders near resistance
- Every day I will set new forex limit orders
- When the forex market is trending, I will use a buy-and-hold strategy.
At last, building a day trading track record to improve your trading performance
Many beginners just want to make extra income. They never keep a day trading journal. As a matter of fact, veteran traders believe that it provide a way to self-coach and improve on their own.
More reading Pure Risk to reward trade System - 1 to 3- Totally random entries
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