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In day trading, your strategy is very important in determining how much you make. In order to succeed in day trading, you need to be selective in choosing your strategy and than mastering it. Trend trading is the most popular trading strategy that is used by the global hedge funds and other successful traders. Always remember the saying, " Trend is your friend." Big profit potential lies in trades that capture big market moves. But most of the time the market is not trending. 70% of the market moves occur only 20% of the time. Most of the time, markets are ranging. Ranging means they are consolidating and moving sideways. You identify a range by the rectangle patterns that form in the price action charts. However, range trading is not as profitable as trend trading. But what to do when the markets are not trending. At those times, you can only do range trading.One of the best trading strategy in range trading is scalping. As a day trader, you don't want to lose sight of the overall market. So how do you go about determining when the market trending. You need to use Multiple Timeframe Analysis. Looking for opportunities to buy in a uptrend or sell in a downtrend is much more profitable as compared to buying at the top and selling at the bottom as done in range trading. In multiple time frame analysis, you can use the daily or weekly chart to determine the overall trend in the market and then use a hourly or a 30 minute chart to narrow it down to determine the exact entry and exit points in the trade. Another day trading strategy not known to many is, "Fading The Double Zeros." Currency markets are primarily influenced by the bank order flows taking place behind the scenes. As an individual trader, you may never become privy to the sell side bank order flows. But there are certain psychological double zero numbers that can trigger large order flows. Using this knowledge and placing trades in those price zones can be highly profitable. Then you can base your strategy on the different trading sessions like the Asian Session, the European Session and the US Session. These sessions take place at different times and have different characteristics. There is one trading strategy known as the London Rush Hour Strategy. You can also use a intraday breakout strategy or fading strategy. Whatever trading strategy, you select first practice it on your demo account thoroughly and try to master it. ------------------------ Watch the interview of the winner of < a href="http://tradingninja.com/2010/01/forex-robot-world-cup-frwc/"> Forex Robot World Cup $100,000 cash prize. Win a FREE COPY of the HVMM Trading System ($2,997) that can trade forex, stocks, futures and options by taking this quiz and also get your FREE COPIES of the Ultimate Day Trading System and the Risk and Money Management Tool!
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