Trades usually takes more than 1 day

Beginner Questions
1

Hello!

I just finished the babypips course and now I’m backtesting my trading plan (based on Ichimoku). I’m planning to start day trading (currently using the 15m time frame). I read that day traders usually take between 1-2 trades per day, but doing some backtesting in my trading plan, it’s kinda hard to hit the profit target (in this case, 2:1) in a day (it usually takes longer).

If you enter a trade that will take more than a day, do you close your position when leaving?

When this happens, what do you usually do?

Thanks for helping!

1 Like
2

Day-traders always close all positions at the end of the business day because they do not want to carry the risk of something negative happening to their positions over-night.

Of course, if you do not apply this rule, you are still a trader but you are not a day-trader. The real deciding factor as to which you are should be the strategy you are using.

3

This largely depends on what the trader has chosen.

4

Normally, you make one to five trades in that hour, and your trading day is very short. If you want to trade all day, develop strategies that adapt to various market conditions.

5

If you trade around the session opens and you will experience more liquidity therefore more movement

6

Yup. Because if not, then you should not be using shorter time frames. But as with all things, you can do whatever you want, your mileage will vary!

7

For me, I’ll use today as an example. I purchased EUR/USD and closed a portion of my position with 40 pips profit, and the remainder of the trade was left on with the stoploss at break even.! Hope this helps.

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