[vc_row][vc_column][vc_empty_space][ultimate_heading main_heading=”What About Day Trading?” spacer=”line_with_icon” spacer_position=”middle” line_height=”1″ icon=”icomoon-question” icon_size=”32″]Do we day trade here at The Forex Army?[/ultimate_heading][vc_column_text]One of the questions we’re asked the most here at The Forex Army is if we trade anything else besides scalping – the short answer to that is “yes”.
In my previous post on using a forex scalping strategy, we discussed the power of scalping and how it can be used in conjunction with our TFA Sniper to trade the markets profitably. The focus is to use 80% of your time on the TFA Sniper and 20% of your time on charts.
For day trading, where our trades are usually opened and closed within the day and last just a couple of hours, it is best to focus 50% of your time on the TFA Sniper and 50% of your time on charts. The main time frames used for these trading style is the 5 minute and 15 minute charts.
Day trading is an art that requires both charting knowledge and TFA Sniper knowledge. This strategy is usually better for traders who are not able to commit the entire day to trading and prefer to set a few pending orders and wait for the market to fill them. It usually takes about 1 hour every morning to check the charts, set the pending orders (with profit targets and stop losses) and leave it to the market for the rest of the day. Upon returning back from work, you can spend another hour looking at the charts, set your orders and let the market take over as you get your sleep.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_empty_space][vc_custom_heading text=”Breakdown of day trading time allocation” font_container=”tag:h2|text_align:center|color:%23000000″ google_fonts=”font_family:Open%20Sans%3A300%2C300italic%2Cregular%2Citalic%2C600%2C600italic%2C700%2C700italic%2C800%2C800italic|font_style:700%20bold%20regular%3A700%3Anormal”][vc_empty_space][vc_row_inner][vc_column_inner width=”1/6″][/vc_column_inner][vc_column_inner width=”2/6″][vc_pie color=”green” title=”TFA Sniper” units=”%”][/vc_column_inner][vc_column_inner width=”2/6″][vc_pie color=”green” title=”Charting” units=”%”][/vc_column_inner][vc_column_inner width=”1/6″][/vc_column_inner][/vc_row_inner][vc_empty_space][/vc_column][/vc_row][vc_row][vc_column][TS_VCSC_Info_Notice panel_type=”success” panel_icon=”ts-awesome-info” panel_title=”What kind of personality does a day trader have?” font_title_family=”Default:regular” font_content_family=”Default:regular”]It is important to know what your personality is so you know which approach to take towards trading.
Here are some personality traits and situations which would make you more suitable to be a day trader.[/TS_VCSC_Info_Notice][vc_empty_space][vc_column_text]
- You have a day job.
Lo and behold, when we have a day job, which most of us do, we usually aren’t given the luxury of time to watch our charts every hour of the day to scalp. So unless you are a forex analyst or an investment analyst, it would be best if you did your trading before and after your working hours.The last thing you want to do is to take a trade in a high intensity environment with the stress of your normal day’s work all piling on you.
- You have a family (on top of having a day job).
Having a family means having to spend time with them once you return back home (or at least it is advisable). Here at The Forex Army, we believe in advocating for a complete happy lifestyle – never ever neglect your loved ones in your pursuit for wealth. If you do so, you may achieve some wealth, but at the expense of something far more important – happiness.So the last thing you want while watching the high intensity market is your children running up to you and distracting you. It would be easier to dedicate an hour watching the market, placing your pending trades and head off to spend time with your loved ones. No one ever said trading the forex market meant you had to sacrifice time with your loved ones.
- You realize you tend to close off trades earlier than planned
The reason you tend to close off trades earlier than planned is because you’re afraid of watching the market go against you as you are in profit. The triggering behavior that causes this is usually because you’re watching the market too closely – every pip up and pip down sends you through a roller coaster of emotions. The key to overcoming this is simple – just don’t watch the market. The reason for this is simple, if you can’t watch the markets, you can’t feel nervous about it and you can’t let your emotions get the better of you.What about trade management you ask? Well, all that trade management should be done beforehand. Where you set your stop loss, where you set your take profit, how far in before you adjust your stop loss to break even and all that should be decided before you take a trade. Once that is done, you just let your MT4 trade manager do its job in managing the trade for you.
[/vc_column_text][vc_empty_space][TS_VCSC_Info_Notice panel_type=”success” panel_icon=”ts-awesome-question” panel_title=”Okay so I’m likely a day trader, what next?” font_title_family=”Default:regular” font_content_family=”Default:regular”][/TS_VCSC_Info_Notice][vc_empty_space][vc_column_text]This is a very crucial realization and decision you have made. Realizing your trading style is one of the most important foundation required to be a successful trader. From this trading style, you will build your entire approach to trading and ultimately grow your trading business from.
The first thing to do as a day trader is to plan your trading around your day :
- What time do you usually wake up?
- What time do you return from work?
- Do you have free time during lunch breaks to check your strategies?
Find pockets of time of at least 30 minutes to 1 hour to allocate towards your trading. Most of what you’ll be doing is placing pending orders on your strategies and waiting for them to be filled.
The second thing to do as a day trader is to learn technical analysis.
As you would be spending 50% of your time on charting, it is absolutely crucial that you learn the art of technical analysis. Here are some articles on technical analysis that we use at The Forex Army which would get you started on your way to being a truly great technical analyst :
- Learn support and resistance
- Learn how to use the RSI in new amazingly profitable ways
- Learn how to use the Stochastic Indicator to trade profitably
- Learn how to Fibonacci retracements effectively
These 4 articles should get you started significantly in learning how we do technical analysis here at The Forex Army. I personally keep things simple and my chart clean using these 4 main approaches.
Once you have mastered these 4 main approaches, you can start using them in tandem with our TFA Sniper to find key turning points.[/vc_column_text][vc_empty_space][TS_VCSC_Info_Notice panel_type=”success” panel_icon=”ts-awesome-question” panel_title=”Alright, what else should I do?” font_title_family=”Default:regular” font_content_family=”Default:regular”][/TS_VCSC_Info_Notice][vc_empty_space][vc_column_text]Now that you have determined you are a day trader, you should move on to determining if you are a day/swing trader. Swing traders are very much like day traders, except their trades usually last a couple of days. These are for extremely busy people and especially for people who prefer to be detached from the market throughout the day and see their profits at the end of every day or few days.
Beyond that, you should also go through the rest of the bootcamp and since you have determined that you are a day trader, it is especially important to learn how to use our TFA Business Plan properly and effectively as it will definitely help you in improving your trading.[/vc_column_text][vc_empty_space][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]