Forex Day Trading Tips

in Day-trading

You need a good amount of money, an excellent knowledge of how the market works and a tested trading plan to become successful at day trading. If you do not have these, you are better off sticking to long term trades.

Day trading which is means completing a trade within a single day is much more difficult as this is the time when most of the experienced and sufficiently funded traders do their thing. If you are an amateur, it will take more than an expensive trading software to beat them at the game.  But this does not mean you can't participate in day trading and earn some decent; only you have to raise your level of knowledge of the market a notch higher. You can do this by spending more hours observing market movements through your demo trades and practicing short term trades. And it will not hurt to read some books on forex trading, so you can have a firmer grasps on the complexities of the market.

It is best to concentrate on single currency pair. Leave multiple currency pair trading to the professionals, at least while you're trying to get a feel of day trading, though it is  not a waste of time checking on what's happening with other currency pairs. It will augment your knowledge about the market. Get as much information about your chosen pair and get historical data of how they interact with one another.  You get valuable insights on the directions they will likely take in different situations.

You have to choose your trading hours wisely.  You might want to avoid trading hours when the bears and bulls are most active as the market will be more difficult to read. Initially, you should choose the quieter trading hours where there is less number of professional traders pulling at one another. There are still good opportunities there, but  make use of your stop/gain wisely .

This might seem like discouraging you from day trading, but it's not.  Day trading is really dangerous if you lack the experience and knowledge about the market. You really have to be prepared in order to become a successful day trader.



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Kc Yap has 1 articles online

KC Yap is an author who likes to write about all interesting events in the world

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Forex Day Trading Tips

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This article was published on 2010/10/30