As mentioned above, some traders will enter and close positions within a few minutes – or even a few seconds (this method is known as “scalping”) – while others will maintain positions for several hours or even through the entire day. While some day traders combine these strategies or switch from one to another depending on current market conditions, most prefer to stick to one type of day trading.
Forex day trading strategies can also be categorized according to the type of resources and data used by the trader. Some day traders for instance trade only on fundamental analysis. They wait for the release of certain economic indicators and data (payrolls, GDP, etc…) and trade the expected market swings. Others rely solely on technical analysis. Whichever type of trader you are, you must know always watch out for economic and statistical releases if you don’t want any surprises.