There are four main principles which should be laid down in any trading strategy. They are: 1) Trade the trends, 2) Diminish the loss, 3) Let the profit increase, and 4) Manage the risks. To be successful you must be sure that your strategy has all of these principles.

Trade of the trends refers to how you make a decision about the transaction. This principle means that you should always enter in the current direction of motion.

Mathematical analysis of the movement in the prices of shares of stock shows that they vary mostly randomly with a small trend component.This means that any effort to trade short-term figures and methods that are not based on trend are fated to failure.

This also explains why intraday trade is so complicated, and why almost no one practitioner of intra-day trade is successful in the long term. The shorter the time window within which you evaluate the motion of prices, the lower the trend component is. Price movements are called fractals. This means that when reducing or enlarging the time window, the behavior of prices is similar. So, five-minutes have a resemble sketch with hourly, daily, weekly and monthly schedules. This resemblance in the graphs assures traders that it is possible to trade intraday successfully with the same approaches that are profitably used for the trade on longer time intervals. Of course, they also try to apply those things that really do not work on long time intervals – Japanese candles, oscillators and Fibonacci numbers.

Though even approaches that use the trend, which operate well at time intervals of average to long continuance, do not work with intraday trading. This is because of the fact that the trend component within a day is too small and it is needed to use very efficient techniques to at least to cover the cost of the trade.

With long-term trading you have the opportunity to let your profit flow. You do this by definition; other way it is not long-term trade. When you trade intraday, you are able to let your profits run until the end of the day. This means that your average earnings will be less than if you would let your profits flow for days, weeks and months. At the same time, the value of the trade – slippage, commission, spread and errors – are kept at about the same level. That is why your system for intraday trade must operate more effectively and persistently in order to cover the value of trading than the medium or long-term system.

As the price movements are mostly random in nature, a successful trading methodology should apply the properties of price motions, which are not random. Tendency of most markets to the building the trends – is the property only possible for use in the trade, so the approach that makes a profit should apply trends. The trends suitable for intraday trade can be found infrequently. Of course, they do not appear every day. That is why those who try to trade every day or even more are often doomed to failure. The more often you trade intraday, the more likely that you will incur losses in the long term.

Nowadays people are looking for additional or even primary sources of income as never. World economy is still in tough condition, and to get a well-paid job is quite hard. And forex is one of the ways to earn some money. To trade successfully one needs to know events on the market, so forex news is of great help here. Those who don’t know where to receive forex market news can make use of the Internet. Just type “forex news trading“, for example, in Google or other search engine and you will get many news sources to choose from.