Currency Futures Trading

Day Trading Strategies encompass a multitude of sub categories in regard to day trading strategies such as, scalping; short-term trading and intra-day swing trades. All these sub categories of day trading strategies are based on the same fundamental idea, which is that all open trading positions will be closed by the end of the trading session. The actual particulars in regard to profit targets, risk parameters and time in the market vary significantly. Which intra-day strategy is best, or best for you? 

First let’s examine each day trading strategy, so that you can compare.

Scalping is referred to as an intra-day trading strategy that attempts to make money on small price changes and or the difference between the bids and offer. Traders who utilize this strategy will execute hundreds of trades a day trying to capitalize on split second changes in a futures price. Scalping techniques are often implemented by automated trading systems that utilize sophisticated mathematical calculations to enter, manage and exit positions very quickly. In my opinion, scalping the market in this manner is best left to those utilizing the automated trading systems that are utilizing algorithms to trade the futures market.

Short-Term Trading is an intra-day strategy that attempts to make money through larger price moves in the futures market. Once again, the actual particulars in regard to profit targets, risk parameters and time in the market can vary significantly from market to market when utilizing a short-term trading strategy. A short-term trader can also implement a multitude of trades within a trading session, but typically far less then a trader utilizing a scalping technique.

Intra-Day Swing Trades is an intra-day strategy that attempts to make money by capturing the meat of a move in the futures market. The particulars in regard to profit targets, risk parameters and time in the market will not only vary significantly from market to market, but will vary from day to day in the same market based on market conditions. This day trading strategy will trade the least amount of contracts on a daily basis, but can still offer a multitude of trades within a trading session.

Utilizing anyone of these day trading strategies is just one piece of the day trading process and each strategy has many trade triggers, money management techniques an exit strategies that can be applied to each day trading strategy. I will offer different day trading techniques with an assortment of trade triggers, money management ideas and exit strategies that can be utilized or modified, depending on a traders objectives, risk tolerance and timing restrictions. Once again, I do not guarantee or promise implied or otherwise that utilizing any day trading strategy will result in profits or limited losses.

There is significant risk of financial loss when trading futures and trading futures is not suitable for everyone. Therefore, you should carefully consider whether such an investment is right for you in light of your financial position.

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