It takes quite a bit of time to develop expertise in intraday trading, to polish the trading abilities and to become established on the foreign exchange market. In theory, there are various intraday trading strategies available. But the success or failure of any intraday trading strategy solely depends on the current market conditions. As with any trading strategy, one must not blindly follow it no matter how promising it may appear, but must rather test and implement the strategy in the real market before coming to a general conclusion about its efficacy.
There are basically three types of intraday trading strategies - the short trade, long trade and the combination of both. A short trade is one in which the trader executes one trade in the morning, the same stock in the afternoon, and another trade in the evening. If this intraday trade goes according to plan, then the trader earns a profit. This strategy involves the use of technical indicators to identify possible trades and eventually trades based on the indicator's suggestion.
Many forex day traders make use of short selling strategies in their efforts to earn higher profits. These strategies involve selling a given security at a lower price in hopes of garnering higher profits than the asking price. This strategy has been used by countless forex day traders for several years now and is actually one of the more popular intraday trading strategies employed by traders to earn profits. Some forex day traders have utilized technical indicators to determine when to short sell. There are also other forex day trading strategies that make use of volume indicators, which are indicators that signal the increase and decrease of the trading volume in the market.
Other forex day trading strategies include the use of fundamental analysis, although it is debatable as to whether these are really analysis or strategies. A fundamental analysis is made with the goal of identifying potential market changes, particularly changes in economic policies or attitudes, which can have major implications for the market in which a given security trades. Fundamental analysis uses technical factors as well as fundamental indicators to analyze market conditions. It may not always lead to greater profits, but is often successful in providing a trader with a greater chance of identifying trends that can be profitable.
There are several intraday trading strategies that work best for certain types of investors. These include short selling and forex arbitrage. Both strategies require the intraday trader to sell a security in the hopes of eventually earning a profit on the sell. Short selling, in particular, requires that a trader hold onto a stock for a period of time until the price falls enough to make it a good buy and then sell that stock for a profit once the price has recovered.
The last four intraday trading strategies are more popular with individual traders. These are scalping, swing trades, and scalp trades. Scalping involves taking smaller trades in the hope of earning larger gains; swing trades involve conducting multiple trades in hopes of making larger gains; and scalp trades involve making multiple trades in hopes of earning small gains. The best way to determine which of these intraday trading strategies is right for you is to experiment for some time before committing to any one of them.