Day trading forex is very popular with the volatility and movement in the forex markets on a daily basis. If you want to learn how to day trade then there are various different choices that you will have to make.
Pick a time to day trade
There are three main trading sessions starting with the Asian session, followed by the European session and in particular the London open and lastly the US session which normally starts with the New York open.
There are plenty of day trading opportunities in all of those sessions, but particularly in the London session as well as the US session. You only have to trade for a couple of hours at strategic times to be very successful. You do not have to be glued to your computer screen for 24 hours a day to be successful in day trading
The best movements normally occur during these sessions with many forex day traders that trade around specifically the London open. Many big movements’ starts at this time and many forex trading strategies are built around trading at this time.
Pick a currency pair to day trade
Not all currency pairs are created equal, and some pairs are much more suited to day trading than other pairs. My top picks for day trading are the GBP/USD, EUR/JPY and EUR/USD.
Pick one of these pairs and focus on day trading only this pair for a session that starts say at the London or New York opens, and ends about three hours later. More is not always better with day trading, and during a three hour forex trading session you should be able to find ample trading opportunities.
Pick a day trading system
When learning how to day trade you will have to pick a trading system which can fall into three main categories namely trend following, reversal or breakout. All of these systems can be successful in day trading with certain personalities that are more suited to certain types of trading.
When learning how to day trade it will be your job to figure out what kind of trading system you are comfortable with, and will be successful with. Some people like to only trade with the trend when there is a trend present, while other day traders only take reversal trades. Breakout trading can be very successful especially around the London open.
Learning how to day trade is a systematic process that has to include a written trading plan as well in order for you to be a successful forex trader.