Intraday forex trading promises quick and steady returns on daily basis, that alone lures many beginners to try it. Do you have what it takes to actually profit from it?

Intraday forex trading, where a trader may open and close running position(s) in the same day, is popular among beginner and experienced trader. However, beginner will likely face difficulties at planning or executing proper market orders at trading platforms. Therefore, this article will cover essential forex trading guides every beginner needs to take note of.

intraday

 

1. Ideal Capital Starts About $200-500

You might come across a broker, offering you a live account that can do forex trading with tiny sum of capital, as small as $1. Somehow, a lot of beginner thought they can profit from it. Actually, that's next to impossible in intraday forex trading.

If that laughable sum of capital came from the broker themselves, without any string attached, you can consider it as dummy account to train with. However if you want to enter a practical trading conditions, you have to weigh in this question, How much money should I deposit as starting capital?

Conventionally, most trader would at least deposit $1,000 to profit from intraday forex trading. They weren't wrong. However, according to some sources, the practical threshold of profitable account started with $200-500 capital. You can certainly raise that recommended minimal amount to optimize your trading opportunities. Do note, if you are a complete beginner, it's better not to dump too much money on your first live trading account.

 

2. Limit Your Exposure, Trade with 0.01 Lot

There's a specific rule of thumb one should not violate while learning intraday forex trading; always trade with 0.01 lot.

Don't be mistaken, it might seem way too small to profit from. Make a mental note; you put your own hard-earned money at risk. Using 0.01 lot will limit your capital exposure while buying you more time and chances to learn intraday forex trading.

Even so, there's no guarantee that beginner won't lose his/her capital. Only, consider this trade with 0.01 lot as a rule of thumb to save your account trading from bleeding too fast.

 

3. Develop A Trading System And Stick With it

You don't base your profit on raw luck. You'll need a trading system to consistently make profits from forex market.

Start developing a trading system. It doesn't have to be complicated and thorough trading system as everyone starts with a simple one. If you are still clueless, here's some forex trading guide that will give beginners an edge:

Trading system is basically your winning formula to enter and exit market by specific rules. Adhering to trading system can train beginners to wrap his/her head on how to profit consistently in forex market.


4. Avoid Using Very Small Timeframe

Some traders can profit from using M5 or M10 timeframe, but don't even think of copying their fast and reactive trading decision making if you're still learning how to set up proper trading system. Small timeframe can produce lots of market noise (false signals) and fast price movement. Such trading environment will only serve to confuse beginner.

It's more advisable to trade in slightly higher timeframe that ranges from 15 minutes to 1 hour (commonly called as M15, M30, and H1). It's ideal for intraday forex trading as beginner can learn how to follow market trends and how to capture trading signals.

 

5. Don't Overtrade

You are well on your way to burn money faster than you can earn if you do this one mistake: overtrading. This cardinal sin in intraday forex trading usually began from irresistible inclination to make profit or covering losses, trades after trades. It's very likely that you'll do more mistake after several losing streaks, eventually leading to margin call.

What you can do to avoid it, is to limit your trades by about 3-5 trades each day. If you have reached that self-imposed limit, no matter what it ends up as (losing or making profit), stay away from trading terminal, and take your time to cool off your head.