Different Types of Trading Methods In Intraday Trading

Intraday trading is all about buying and selling stocks on a given day. The objective of day traders is to see whether their purchased stocks will rise or fall in value during the day's working hours. At the risk of incurring a loss, intraday traders hope to gain higher profits from the stock bought and sold during the time. Through the use of specific intraday trading strategies, day traders hope to add daily wins to their portfolio.

Intraday trading techniques include a wide range of strategies such as candlestick chart, candlestick patterns, momentum strategies, and more. Here are essential day trading strategies that you can employ and try if you are looking to earn profits by trading within one day. That’s why you should try a MT4 demo account from Hantec Markets first – a safe environment to practice and experiment before you commit.

Momentum trading

Through the momentum strategy, investors buy stocks when the price is rising. Some important points to consider when employing the momentum trading strategy include:

• A rare and drastic move in price, driven by a sound catalyst such as sudden earnings growth, successful launch, and full acceptance of new product or service, mergers, and acquisition news, etc.
• Stock growth of 25% to 40%
• Little-known stocks that trade quickly due to a decreased number of shares
• Trends or expert opinions on momentum trading from advanced analytical tools and communication platforms by well-reputed brokers such as Kotak Securities

To ensure that you do not incur significant losses, you must set a stop-loss order just below the decline of the first price.

Scalping strategy

The premise behind the scalping strategy is that small profits during the day add up to a substantial amount at the end of the day. A day trader employing the scalping strategy sets a buy and sell target and adheres to the planned levels. 

This is a swift strategy where you can buy and sell in a matter of seconds or minutes. Expert day traders generally employ the scalping strategy when they are confident to make instant decisions without regret.

Pullback trading strategy

Day traders using the pullback strategy look for stocks that have a demonstrated trend. They supervise this trend until they witness a price decline from the pattern. If an upward trend is observed, the downward price movement -- also known as Pullback -- becomes the entry point for the day traders to begin buying. To understand this strategy and the stock's trend, day traders use technical charts.

Breakout trading

When stock prices rise above the previous day's top resistance price, the breakout trade takes place. However, breakout trading is not as secure as viewing the chart, understanding the resistance, and making a purchase after a breakout. It is crucial to carefully observe the level of stock trading volumes or the number of shares that are being transferred. 

This is because, according to market experts, breakout trades on high volume are more inclined to be sustainable at the recently-changed higher price than the breakouts that have a little volume.

News trading

Stocks generally react to news events. For instance, missed earnings could cause stock prices to plummet; a rise in crude oil prices could affect oil and gas stocks, so on and so forth. By being alert on local and global happenings, you can capitalize on the information.

Conclusion

Intraday trading comes with a high degree of risk and could result in substantial gains or losses in a short timeframe. Although there are no sure shot guarantees that intraday trading can offer you high returns, you can make consistent profits in the long run by learning and applying some of the strategies and techniques mentioned above.

Summary of MetaTrader 4 Free Trading Platform

The MetaTrader 4 software, which is often referred to as MT4, has a lot of options and newbie users find themselves overcome with the settings. If you've never traded with MT4 4 platform, you will find that it's basically a trading platform that leads to a window into the world of foreign trade. There is no doubt that it takes a while to figure everything out, there are really only a few MT4 settings you will need to know for trading.

Add Indicators

Probably the most useful features are the opportunity to add indicators, expert advisors,and templates to your trading window in MetaTrader 4. It is extremely valuable since there are a huge number of MT4 users,companies, as well as trading professionals and that, share their configurations for free or for a little payment.

MT4 Indicators Worth

Trading indicators help the consumer recognize price patterns and aid in live trading. You can find thousands of different indicators out there. Indications can produce purchase and sell signals obvious on the graphs. 




Within the MT4 platform, there are many built-in useful indicators,but users can also install custom indicators just according to their requirements. These custom indicators generally show much more information than the standard built-in ones. Indicators can also become areas of an Expert advisor.

Automated Trading

Expert advisors are made to automate trading. If you have a specific indicator that shows buy and sell signs, an expert advisor will carry out the trades on the signals. Additionally, Expert advisors have rules define each trading position based on specific trading strategy and money management.

Expert advisorsare usually paid by subscription,but there are also free ones available on trading forums. Using EAs is completely automated,so trades are executed without user insight. The risks of such an automated system are apparent, so most traders prefer to rely on trading indicators and live evaluation based on their market knowledge and experience.

Choice of Templates

In addition to Indicators and Expert advisors, there are custom templates that can be added to MetaTrader 4. Templates allow configuring the look and feel of your trading window. MT4 users often share templates with their settings.

Use Indicators Wisely

Now that you are thinking about using MetaTrader 4 and giving trading a go you have to understand that all indicators you use are just the helping tools. ,There are lots of indicators that will serve you well,but you have to use them carefully.

There is a stating 'The trend is your friend' which is often used in trading classrooms. If you possibly can just follow the developments you can make it as a successful trader. However, it can make a lot easier in theory. 

Specific indicators such as the Bollinger Bands and Moving Averages help to see what's going on and recognize certain market sentiments, whether it is bearish, going down or bullish, going upward.

The type of moving averages to use largely count on your trading strategy. They are one of the simplest indicators one can use to industry binary option or Forex using the MetaTrader 4 software.

Use Price Action Strategies And Signals And Know The Best Time To Trade

Forex trading involves the trading of currencies on different trading platforms. Many factors affect the currency market. And, you want to trade currencies, you need to adopt a host of analysis and strategies to strike the best deal and reap maximum benefit. These strategies help in assessing the market well. 

With these strategies, you can gain a competitive edge over other traders in the global market. Learning these strategies will contribute to your success in trading. By following the simple three methodologies, you can interpret the data well and trade at the appropriate time. Trading a new market can be intimidating at first. That’s why you should try a MT4 demo account from Hantec Markets first – a safe environment to practice and experiment before you commit.

Data at your fingertips

The term price action trading implies to the methodology of laying down all data required for trading on a price chart. There is no scope of confusing data in this procedure. These charts capture data related to global data during the stipulated time. The resistance and support zone, as well as the ranging market, is also depicted in the chart. 



The movement of price in the market, the actions of the brokers in the specific period the time is reflected in the chart. Global development and other economic updates affect the market, but as a trader, you need not analyze those. This news is automatically reflected in the price action chart.

Pin bar strategy

You can follow a few trading patterns to succeed in the Forex market. Pin bar setup is one such price action pattern used for trading. These bars can be generally located in the resistance, and support zones provide accurate structures. 

They indicate the trend and the rejections, as well. These bars can also be used in the context of the trending market. Depending on the movement of price, these bars can be categorized as a bearish or bullish pin bar.

Indicates the market trend

Another strategy or pattern used for Forex trading is fakey strategy. This generally indicates the rejections in the global market. There are times in the foreign exchange market when the market seems to move in one direction only and then turns reverse. These conditions lure amateurs a lot as the experienced traders push the price in the opposite direction. 

Depending on the fakey setup, you can really take some bold steps in the Forex market. The last one is Inside Bar Setup. This can be used as a continuation signal as well as a turning point one. This setup is best used in weekly and daily price charts. It denotes the combination and also the recent trend of the market.

Spot the favorable time

Forex market is dynamic; the information or the trend that it leaves behind is also referred to as footprints. These footprints, also known as clues, help in determining the pattern of the market. Well, these clues are also known as signals of price action trading. 

The best time to enter the market depends on these signals. Along with this signal, another factor is a hot point that also decides this time. This point is also called confluence, which is the intersection of more than two levels. Traders generally look for areas where two or more level conglomerate. These can be assessed with the use of different tools.

These setups and strategies make Forex trading easy and reduce complications. If you have mastered the use of these strategies, then the trading will be really easy for you. When the market is bound by range, then trading in the consolidated is the best option. Following these strategies, you can trade according to the trend of the market. 

From the daily chart, you can spot the time which is most favorable for trading. A daily chart gives the actual depiction of the foreign exchange market. Knowing the basics of price action strategies is essential for successful trading.

Author Bio: Neil Hyden writes blogs on Forex trading. He writes a great deal on strategies and signals used in price action trading and elucidates how it helps in trading as a whole.

Scalping: How The Smaller Profits Can Start To Add Up

Scalping is known as a type of trading that specializes in taking the profits on the smaller changes of price, typically right after a trade has been entered and is now profitable. This means that the CFD trader will need to have a strict strategy for exit since a single large loss will eliminate all of the smaller gains that were obtained through hard work. With the right resources and tools, like a live feed, the stamina and the right broker you will be successful in your strategy. 

Main Premises Of Scalping

There are three main premises of scalping that you need to keep in mind if you are planning on using this as your primary strategy of trading. These include: 

Less Exposure Will Limit Risk 

• When you have a brief exposure into the market, you will diminish the chances of facing an adverse event. 

Smaller Moves Are Simpler To Get 

• A larger amount of demand and supply is needed in order to get a larger change of price. It is much easier for the market to move 10 cents than it would be to move a whole $1. 

Smaller Moves Are More Frequent 

• Even during the markets that are generally quiet, a smaller move is more likely to occur than a large move. Plus it's better for you to have smaller moves than larger moves in the first place. 

Primary Style Of Scalping 

A scalper will usually make a great amount of trades in a single day, anywhere from 5 to several hundred. They will usually use one minute charts; this is because the period of time is very small and they need to see the set ups as close to real time as they can. The instant and automatic execution of their orders is very important to scalpers, therefore a 24/7 broker is the best tool for them to use. 

Supplementary Style Of Scalping 

Those CFD traders that are within other frames of time have the option of using scalping as their supplementary approach in many different ways. The best way would be to use it when the market is locked in a range that is narrow or choppy. When there are no trends within the longer frames of time, moving to a frame of time that is shorter might show exploitable and visible trends, which might lead to scalping by the trader. 

The Bottom Line Of Scalping 

Scalping is a method that might product great profit for some CFD traders that choose to use it as their main strategy, or also for those that would like to use it as their supplementary strategy along with their other strategies. Making sure that you pay attention to the strict strategy of exiting is very important for making sure that your small profits are turning into large gains in the end. The frequent amount of small moves and making sure that you have brief exposure in the market are very important aspects that are the main reasons why this is such a popular strategy among many of the most successful CFD traders.

Author Bio
Alisa Martin is a master at scalp trading and has been working with stocks for 13 years. She prefers scalping with CFDs as her primary strategy for trading, due to how simple it is to use and how effective it can be if you use it right.

The Internet’s Role in Forex Trading

The investment market has been expanding its client base steadily for many years now. Individuals from any and every occupation and background can participate in a range of trades including stock exchange, real estate, currency trade etc. Out of these the last one i.e. the currency trade or foreign exchange is the investment market which has garnered the most popularity in recent times. This new found popularity is not unfounded as foreign exchange can lead to high pay outs and is accessible to all participants via the Internet at any time. The massive participation of this market has resulted in a daily transaction of about 4 trillion USD. 

The most important factor which can help a trader to transact successfully with considerable profits in this market, is the Internet. It is this online world which has skyrocketed the market’s popularity by throwing it open to everyone, everywhere. Apart from this factor, there are also a number of forex market related benefits that are available to us, because of the Internet.

Following are listed a few such benefits:

• Research – Foreign exchange is a currency trade involving pairs of currencies from various nations e.g. currency pairs USD/GBP, USD/JPYen, USD/Euro, GBP/Euro etc. (most popular being the USD/EUR). Therefore, it is imperative that we know the major economical trends of the nations whose currencies we deal with. Here the importance of research cannot be stressed enough. It is through effective and optimum research that we can analyze all those national and international indicators that affect the currencies we trade. Thus, proper research will lead to sound analysis and accurate decision making, thereby enabling us to maximize our profit while limiting our losses. And since the Internet makes news from the remotest parts of the world available to us at the click of a finger, it is the most potent source for such research.
• Leveling the field – As mentioned above, foreign exchange as an investment market is available to one and all. There is no particular body governing or regulating the trade, hence direct participation without any middleman or forex broker is possible. Also, due to the sheer amount of money and number of players involved, it is not possible for any person or business entity to monopolize the entire market. The Internet further makes the process obstacle free and levels the field for all traders as it makes all the required information including research materials, training programs, rules and procedures available to one and all.
• Practice makes perfect – This involves one of the best forex related services provided via Internet i.e. demo account. A demo account is a virtual currency trading account through which you can invest virtual cash till you’re confident in yourself and have narrowed down on a particular trading strategy. These accounts are offered by many websites like teletrade (they offer it for free). All you have to do is to fill out the necessary details and download the relevant software (in the case of teletrade it is Meta Trade 4 or 5), and you’re ready for practice.

As mentioned earlier, the information stock of the Internet is inexhaustible, hence for further information on the subject you can look up the other available websites specializing in this field.

Author’s Bio – Alisa Martin is an investment advisor. She also regularly writes for teletrade and other popular forex and investment related websites.