Intraday trading, which used to be the only passion of those traders trading in a stock exchange hall, is now a square game for all currency speculators trading online. Encouraged by intensive intraday price fluctuations, constant flowing quotes, capacity of modern PCs and competitive spreads and commissions, modern traders apply to numerous trading methods using intraday strategy as they do not always stay abreast with all fundamental news and technical reviews. Basically, intraday Forex strategies may bring either failure or market success.

So, what is attractive in intraday strategy for traders? Do some really effective methods of intraday trading exist? What is the nature of success in this trading strategy: luck or professionalism? Can anyone study this type of strategy? What is the difference between a successful intraday trader and a successful position trader? And finally, what are the advantages of intraday trading as compared to other market strategies?

Intraday trading is generally defined as a trading style when a trader conducts trades within the limits of a day, opening and closing out positions during 24 hours. An intraday trader always closes out all trades by the end of the trading day, no matter whether they are profitable. Intraday traders do not boast allegiance to any position. Their focus is on the next few pips regardless of whether the price goes up or down.

Below the advantages and disadvantages of trading intraday are listed:
1. No worry about news that come at night
2. More efficient profit management
3. An enforced exit eliminates losses
4. Working with high price fluctuations
5. Positive emotions drive positive attitude
6. Trading in liquid markets

1. Intraday fluctuations may be essential raising the degree of risk
2. Constant attention is needed
3. Neglecting the long-term trend
4. Need in constantly updated quote flow
5. P&L are restricted
6. Intraday strategy requires active trading which raise costs
7. Only well-disciplined trader may succeed.

Intraday trading is closer to technical principles rather than to fundamental analytic principles. However, it is a well-known fact that fundamentals may drive the market in a long run, but they are not important for intraday traders. Anyways, a successful intraday trader has his ways to capture the movement driven by emotional reaction for economic news by the market participants.

Trading with support and resistance
This method is commonly used by Forex intraday traders. It involves two aspects: first a trader should define the main intraday trend and then, when the trend is defined, he needs to draw support and resistance lines. When the trend is defined as upward a trader would buy at a support price and when the trend in downward a trader would sell at the price of resistance. This method is followed by risk management strategies.

When engaging into intraday trading follow the next principles:
• Use the major currency pairs as they imply tight spreads and a high degree of liquidity.
• Choose a Forex broker which provides constantly updated flow of quotes.
• Fast execution and good order processing are the things which can save your money.
• Avoid trading when some important economic news happen as the reaction of the market may hamper your trading expectations.

Author's Bio: 

Dennis Vydrin of Forex Ltd, an experienced expert in Forex trading. Find everything you`d like to know about Forex at