Finance

Day trading strategies for forex trading in Singapore

3 Mins read

The foreign exchange market is one of the most exciting and fast-paced markets globally, and traders can make huge profits from just a few pips moving in either direction. However, forex trading is also a precarious business, and many traders have blown up their accounts to pursue quick gains. In this article, we will look at day trading strategies that you can use when trading forex in Singapore; see this page to find out more.

forex trading

Breakout trading strategy

One popular day trading strategy used by many forex traders is breakout trading. It’s based on the premise that market prices tend to break out of ranges and trend in a particular direction after a period of consolidation.

To trade using this strategy, you will need to identify a currency pair trading within a range. Once you have found such a pair, you will need to place your buy and sell orders at resistance and support levels. You can then take profit when the price breaches either the support or resistance level.

Trend trading strategy

To trade using this strategy, you will need to identify a currency pair trending in a particular direction. Once you have identified such a pair, you will need to place your buy and sell orders at two price points in that currency pair’s trend. You can then make a profit when the price begins to reverse direction.

Scalping strategy

It involves trading short-term price movements with high leverage to consistently make small profits over time.

To trade using this strategy, you will need to identify currency pairs at their support or resistance levels and are offering good risk-reward ratios. Once you have found such a pair, you will need to approach it from both sides by placing your buy and sell orders just a pip or two away from the support and resistance levels, respectively. You can then make a profit when one of your orders is hit.

Swing trading strategy

Swing trading is another popular day trading strategy that traders use to make consistent profits from the forex market. It involves taking long and short positions by holding your trades for a few days or even weeks.

To trade using this strategy, you will need to identify currency pairs with solid trends on higher timeframes. Once you have identified such a pair, you will need to place your buy and sell orders near those trend lines’ highs and lows, respectively. You can then profit when the price reaches certain levels or when it starts moving against your position.

News trading strategy

News events are one of the biggest drivers of short-term volatility in the forex market. Many traders like to trade around these events to take advantage of the price movements that often occur. To trade using this strategy, you will need to understand how different economic news releases can impact the prices of currency pairs.

Range trading strategy

Range trading is another popular day trading strategy used by many forex traders. It’s based on the premise that market prices fluctuate between certain levels.

To trade using this strategy, you will need to identify range-bound currency pairs on lower timeframes. Once you have found such a pair, you will need to place your buy and sell orders at support and resistance levels. You can then take profit when the price breaches either the support or resistance level.

Fading strategy

Fading is a type of day trading strategy based on the notion that market prices tend to move in cycles, and it means that prices are likely to trend in the same direction after a period of consolidation.

To trade using this strategy, you will need to identify currency pairs consolidating on lower timeframes. Once you have found such a pair, you will need to place your buy and sell orders at the highs and lows of those consolidation periods. You can then take profit when the price begins to move in a particular direction again.

Moving average cross strategy

To trade using this strategy, you will first need to identify two currency pairs which have consistently been trending together. Once you have found such a pair, you will need to place your buy and sell orders at the point where their moving averages cross. You can then take profit when those moving averages reverse direction or ride out the trend until it ends.

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Introvert. Incurable tv guru. Internet lover. Twitter trailblazer. Infuriatingly humble communicator. Spent a weekend creating marketing channels for cod in New York, NY. Spent the 80's writing about fried chicken in Pensacola, FL. In 2009 I was investing in sock monkeys in the government sector. Spent high school summers exporting cannibalism in Deltona, FL. A real dynamo when it comes to donating Roombas in Miami, FL. Spent 2001-2005 supervising the production of acne for no pay.
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