The best day trading strategies in the forex market are varied, as there are many different strategies that traders use in their day-to-day trading in the forex or stock market.
Day trading is when traders participate in the money markets through various financial instruments, from stocks, foreign currencies, and futures contracts, to achieve continuous financial gains.
Various types of traders participate in the trading process, from just independent individuals in their homes to giant financial institutions moving billions of dollars into the markets.
The best forex day trading strategy is packed with procedures and requires traders to be present at the trading station throughout the session.
It is widely known that the narrower the time frame a trader operates in, the greater the likelihood that he will be exposed to risk. This is why day trading can be described as one of the riskiest ways to trade the currency markets.
The forex trading strategies used by day traders are not different, nor are they the reason for increasing the risk. The overall logic is the same for almost any period.
Instead, the rules of day trading in forex tend to be more stringent and dislike those who do not follow them.
How can you get the best Forex Day Trading Strategy?
To achieve robust performance in the forex market, you must be ready to spend more effort and time to complete your deal without any losses and achieve impressive results.
There is no single successful day trading strategy in the world that can be applied to every situation in the financial market, price setting, or any opportunities you encounter during your trades. This is why it is essential to become a competitor and specialist in one of the following two options.
First, you may want to become an expert and get the best day trading strategy and use it whenever possible; Second, you can choose to master a small range of Forex strategy types and apply them to as many different situations as possible.
Although the former two options are the wisest to follow, these options also have their drawbacks. The first requires the trader to be extremely patient; The second requires that you control your feelings and emotions and be aware of complex situations and conflicting signals that you may experience.
the ten best trading strategies in the forex market:
1- Daily Trading
This strategy focuses on each forex market’s main sessions while following the daily trends of currency prices, which are in line with trading the currency pairs: EUR / USD, USD / JPY, GBP / USD, USD / CAD.
2- Scalping strategy
The speculative strategy aims to increase the trader’s balance by achieving a large number of profits. Still, it is of small value and depends on trading currencies by buying and selling within a short period and earning quick profits.
3- Martingale strategy
The Martingale strategy is not suitable for novice traders. It relies on risk to recover the realized losses, meaning that the trader doubles his investment size each time to compensate for his past failures.
For example, if the trader invests $ 100 and loses the deal, in the next deal, he invests $ 200 to compensate for his loss in the last deal, and this is among the best day trading strategy.
4- Swing Trading Strategy
The swing trading strategy is known as the “open and forgets” strategy, meaning that a deal can last not only for hours but for days as it does not take long to manage.
This strategy involves choosing high-interest currency pairs with relatively low movement. This is the best day trading strategy for traders who do not have the time to manage their trades.
5- The Counter-Deals Method
It is one of the best forex strategies that are guaranteed to be very successful. Instead of one deal, a trader opens two deals on the same currency pair but in opposite directions, i.e., trading by buying and another deal to trade by selling on the same currency pair.
6- Carry trade strategy
This strategy is intended for beginners in the forex market due to its ease and simplicity. It differs significantly from some other strategies, which perform better in an environment of high volatility and markets with clear general trends.
Whereas, currency trading options on this forex strategy prefer markets with confined price ranges, i.e., those with movements between support and resistance levels and not dependent on the absence of volatility.
Additionally, this “open and forget” strategy is beneficial in the long run, as it requires very little time to manage but takes some time to start making profits.
To get the most out of the best day carry trading strategy, you should look for the currency pairs with low volatility and the highest interest rate.
Higher percentages usually mean more significant benefits. After that, you should trade in the direction of the positive swap, that is, selling the lower interest rate currency or buying the higher interest rate currency; this will allow for large profits in the long term with the help of positive interest.
An economic theory from the fundamental analysis book supports more logic for the method of rolling trading, as this theory states that currencies with a higher interest rate attract more investors proportionally than the counter currency in the long term through their financial inputs.
The collapse of the strategy means that trades may be affected by short-term price fluctuations. This is why traders should be understanding and accept that they may be placed negatively for extended periods.
Moreover, the carry trading strategy is difficult to manage and requires considerable capital, given that such trading may last for at least a few months.
7- Trading: Drop on Stop
This strategy is the opposite of the previous strategy and works to trade strong breakouts to the bottom, and it is one of the best day trading strategies for some users.
8- Forex fractional trading
One of the best day trading strategies for some traders is not just a strategy but also an understanding of trading. You look at what the price is doing and why and who is causing the market to move.
9- London Hammer Trading Strategy
This strategy can be used at a time when the price may shoot powerfully in a specific direction, or it may reverse strongly from a support or resistance area.
10- “Pop on Stop” Trading Strategy
This strategy helps you determine if the price will continue in a specific direction of the breakout or not. This strategy is useful when the price retraces to the top, and this strategy is the best day trading strategy for some.