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Every trader wants to become a professional trader in the forex market but only the top 1% of people get success in this business. why only top 1? because they follow forex day trading rules, trade with discipline, and have a perfect mindset.
In this article, I will discuss the rules of forex trading. let’s try to explore our natural phenomena. Sunrises and sets in time. Everything in this nature is following a rule and regulation. we have to apply this technique in this business too.
“Every game has rules. Life’s a game that has its respective rules; obey the rules, win the game!”– Israelmore Ayivor, shaping the dream
What is the meaning of intraday trading?
Intraday trading or day trading is the same thing. there is no difference between intraday and day trading. Intraday trading means opening and closing a trade daily.
for example, a trader opens trade after a daily candlestick opening. Now he will close his trade at the end of the day. it does not matter in loss or profit but he will close the trade. This is simple day trading.
How much does a day trader make from forex?
Well, this question has not a single answer. it depends on many factors. for example,
- the account size of a trader
- Risk management strategies
- Trading Strategy
on average, a day trader in forex, with an account size of $10k, can make at least $200 per day by risking 2% per trade. if you will risk more money you will get more profit or loss.
The best time frame for day trading forex
5 min and 15 min time frames are the best forex day trading. because it will be easy for an intraday trader to analyze the market in a short timeframe.
Best thing a day trader should know
The major thing I’m going to tell you is that there’s no holy grail system in trading which you mostly read on different websites on the internet. You can’t become a millionaire in one night from forex. Success demands effort and sacrifice.
I teach traders with very simple and effective techniques, no holy grail system but to learn high probability setups with very simple techniques. I prefer a trading setup with a high-risk reward ratio as well as good money management. There are thousands of day trading strategies but you can’t win without proper money management. Successful traders give more time to trading psychology as well as money management. Trading Psychology and money management are two important rules of forex trading
Before we start you have to know that you cannot become a millionaire in a month or a year. When there will be consistency in your profits then you are on the way to a millionaire. you have to accept losses in the market and don’t try to take revenge from the market. losses and profits are part of a business.
Best 8 rules for a beginner day trader
Before trading forex on a real account you have to make sure you are following these forex day trading rules:
- You know how the forex market works how buying and selling are two powerful forces in the market. you know everything basic about the forex market i.e pips, candlesticks, units.
- Make sure you have an effective strategy with backtest results having a minimum 1:3 risk reward.
- you own a trading plan. It means if the trade goes in profit how will you manage or if it goes in negative then what you will do.
- Demo results of your strategy. at least 100 samples of your strategy proving all requirements of an effective strategy.
- Risk Reward should be a minimum of 1:3. this will help a lot you can say this is real magic in trading.
- keep a record of your trades ( make a trading journal )
- the last thing to remember is trading psychology. Be confident in your strategy. Never be greedy in forex. Go with your trading plan and accept losses. don’t try to revenge from the market.
8. Follow proper risk management. I will recommend you 2% risk per trade.