Best Intraday Forex Strategy for Beginners | Easy Guide
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| What is Forex Trading |
We can say that forex market is a powerful market of the world or the biggest financial market. Every day trillion dollars are traded. But the biggest challenge for beginners is – how to start, which strategy is right, and how to avoid losses?
In today’s article, we will talk about simple step by step intraday forex strategy, which is especially best for beginners.
What is Forex Trading
Forex trading means selling one currency and buying another currency. Like INR/USD or EUR/USD. When you do intraday trading in the forex market, you do your buying and selling within a day. You must also know that this is what happens in intraday trading.
The forex market runs 24x5, meaning it is open day and night from Monday to Friday. Its advantage is that you can trade according to your time. But the risk increases.
Why do Intraday Forex Trading?
In intraday trading you do not have to hold positions overnight. This prevents overnight risk or big losses. This is a safe approach for beginners because: Just like the stock market closes at 3:30 pm and we do analysis for the next day and take the trade and leave it, this is not the case here.
- Risk is limited
- Capital is not required much
- Trading is fast
- Price action works very well
But without a correct strategy it is difficult to make money in intraday forex trading.
What is the first thing that is important for beginners?
Before starting Forex trading, it is important to understand some basic things:
1. Basic understanding of currency pairs
In Forex, trades are done in currency pairs. Such as:
- EUR/USD
- GBP/USD
- USD/JPY
You have to understand which currency is strong and which is weak. To do this analysis, both news and charts are important.
2. Choose the Right Trading Platform
Nowadays you can easily trade forex from mobile as well. Here are some top mobile apps which are useful for beginners:
1. Meta Trader 4 (MT4) App
Most popular app – supports live charts, indicators, and expert advisors. Available on both Android and iOS.
2. Meta Trader 5 (MT5)
Advance version of MT4 with more timeframes and depth of market feature. Easy for beginners as well.
3. Trading View Mobile
Best app for viewing and analyzing charts. Real-time data and community ideas are also available.
4. Invest Mate
Forex education app for beginners. Helps to understand basic concepts through interactive lessons and quizzes.
5. Forex Factory (Browser Compatible)
For news and economic calendar. You can get live updates by opening it in mobile browser.
You can also use any broker's own app like Zerodha Kite, ICICI Direct, or Up Stox – if they have forex support available.
3. Practicing on Demo Account
With Demo account you can get experience of market without investing money. This is a safe way to learn trading. Beginners should not start with paper trading first
Simple & Powerful Intraday Forex Strategy for Beginners
Now let’s talk about a simple intraday strategy which is specially designed for beginners. Its name is “London Breakout with Confirmation” strategy.
Step 1: Choose the right time
The London market session is the most volatile. According to Indian time, it starts at 12:30 PM. You have to see the price movement from 11:30 AM to 12:30 PM in the morning.
Step 2: Mark the High-Low
Mark the high and low of the first 1 hour of London open (11:30 AM – 12:30 PM) on the chart. These will create breakout levels.
Step 3: Wait for confirmation
Do not trade immediately after the breakout. When the candle closes above the breakout level and the next candle goes in that direction, then only take an entry.
Example:
After 12:30, if the price breaks the upper range and the candle closes above it, then buy.
If it breaks below, then sell.
Step 4: Fix Stop Loss and Target
Stop Loss: Place SL at the opposite breakout level
Target: Keep a 1:1.5 or 1:2 risk-reward ratio
This strategy is simple as well as highly effective. You just need patience and discipline.
Risk Management – Most Important Point
If you do not control risk in Forex trading, it is difficult to make profit. Do not risk more than 1-2% of fixed capital in each trade.
If you are starting with ₹10,000, then it will be safe to risk ₹100-200 in one trade.
Never do revenge trading. If you lose a trade, plan the next trade patiently.
How to keep emotional control?
Trading is not just a game of analysis. Emotions like fear, greed, and overconfidence can cause you losses. Therefore:
- Create a trading journal
- Write a daily analysis
- Learn to accept losses
When you become emotion free, only then consistent profit is possible.
Helpful Forex Tips for Beginners
If you are new, these tips can be a game changer for you:
1. Understand the impact of news
Major news like interest rate decision, NFP report or CPI data have a big impact on the forex market. Avoid it at such times or be on high alert.
2. Use indicators smartly
Too many indicators are confusing. For beginners, only 2 indicators are enough:
- Moving Average (50 EMA)
- RSI (Relative Strength Index)
- These will tell you the trend and entry points.
3. Learn to choose a timeframe
5 minute and 15-minute charts are best for intraday. Get confirmation from higher timeframes (1 Hour, 4 Hour).
How much money to start with?
Forex brokers give you leverage. But for beginners it is better to start with less capital. Start real trading after demo with ₹5,000 – ₹10,000.
Growth is possible even in small account with discipline and strategy. Just keep daily target and SL fixed.
How is your strategy working?
You must keep a record of your strategy:
- How many trades you took
- How many you made in profit
- How many you lost
If you are consistently maintaining a 1:2 risk reward with more than 50% accuracy, you are on the winning path.
Keep realistic expectations
Forex trading is not an overnight riches game. You need patience, learning and practice.
If you start with ₹2000-₹3000 profit per month and gradually increase the capital, it can become ₹10,000+ monthly after a year.
Consistent Profit Formula
If you follow these 3 things, you can earn money consistently:
- A tested strategy
- Strict risk management
- Emotion control
Without these, no trader can survive long term.
Best Currency Pairs for Intraday Forex Trading
It is not right for beginners to trade every currency pair. Some pairs are highly volatile, in which there is quick movement and there is more opportunity.
These are some of the best currency pairs that you can consider for intraday trading:
1. EUR/USD – Most Popular Pair
This pair has the most liquidity. The spread is low and the movement is clear. For beginners, this is the best starting point.
2. GBP/USD – Fast Moving Pair
This pair moves a little more, but if you have some experience, it can be quite rewarding.
3. USD/JPY – Stable Movement
This pair rarely has sudden spikes. Technical analysis works quite well on this.
4. AUD/USD – For Asia-Pacific Session
This pair is useful if you trade in the morning. Its movement is more during Sydney and Tokyo sessions.
5. USD/CAD – Related to Oil Prices
If you look at oil or commodities, USD/CAD can be quite profitable.
Tips:
Focus on just one or two pairs.
Trade only those pairs in which you are comfortable.
Whose volatility is according to your risk level.
Common Mistakes Beginners Should Avoid
Forex trading beginners make some common mistakes which can be avoided:
1. Overtrading – Trading too much
It is wrong to trade on every signal. Wait for quality signals. 1-2 good trades are enough in a day.
2. No Stop Loss – Trade without Safety Net
Placing a stop loss is the helmet of trading. Trading without SL means leaving the capital at open risk.
3. Keeping Unrealistic Targets
People think that they will make double money in every trade. It does not happen. Be realistic – 1:1.5 or 1:2 risk reward is best.
4. Emotional Decisions
Taking revenge trade with double size after loss is the biggest mistake. Keep your mind under control.
5. Trading during news time
Price moves wildly during high impact news. If you are a beginner, then avoid trading at that time.
Conclusion
Intraday forex trading can be a good start for beginners, if you follow the right strategy with discipline. “London Breakout with Confirmation” is a simple, safe and effective way through which you can earn money by understanding the market.
Learning and improving in trading is a continuous process. Every day the market teaches something new. So be patient, start with small capital, and keep growing your trading skills.
If you liked this guide, save it and share it with other beginners. To connect with Harsh Trader keep checking regular blogs on BullishRun.in.
