What is Day Trading in the Forex Market?
Day trading is a word for a trading style across the short term. Traders are usually only making one trade a day and then close it when the day is out. They like to pick a side at the start of a day, act on a bias and finish their day with hopefully a profit, but sometimes a loss.
Four-hour Time Frame Trading
This is another short-term trading position where a trader makes a purchase and re-sells after a four-hour period. Unlike in other markets, the Forex market is always open and so a four-hour window has special importance. It can straddle two geographical trading zones and therefore spot potential opportunities.
One-hour Time Frame Trading
With one-hour time frame trading, traders look at hourly charts as opposed to longer time-frame charts to ascertain the best time to strike a trading deal.
Thirty-Minute Time Frame Trading
Thirty-minute time frame trading is perfect for busy people. Any time frame can be used as long as a trader can see the difference in the movement between opening and closing positions.
15-Minute Time Frame Trading
Trading in 15-minute intervals is tight but can be done well if there’s a lot of movement between positions during the time period.
5-Minute Time Frame Trading
This is the closest time frame for trading and looking at charts. For some, it will be too close and there won’t be enough time for there to have been significant movement on a trade’s starting and closing position.