Forex day trading is not just another trading technique or an hobby which can be pursued in free time and earn some extra bugs. On the contrary if done with right understanding and technique it has the potential to develop as a full-fledged carrier by which you can earn a small fortune for yourself.
What is Forex day trading?
Forex day trading basically refers to a way of trading when traders begin their day with particular investment and end up the day with either profit and loss due to that investment. They do not hold their position overnight or for two or three days. Trade entry done in the morning closes by the night before the end of trading session.
Who does Forex day trading and how they benefit from it?
Forex day trading is usually preferred by the traders who not only have lot of confidence in their analysing skills but also have sufficient time for analysing, executing and monitoring the trade throughout the day. Daily analysing practice and execution of the trade surely offers lot of grip to the traders on the working of the forex market. As they are in touch with the market on daily basis they are have a clearer concept of market trends and movement of currency pairs as compared to occasional traders or traders who trade on long positions.
How day traders trade?
Forex day traders can find suitable stock for training in one of the following three ways.
- They keep on trading on fixed one. Two or three stocks and monitor them constantly and become expert of those stocks.
- Secondly they can run a stock screener to find the stocks with maximum volume every week and trade accordingly.
- Thirdly some traders also look for suitable stocks for trading on daily basis.
Forex day trading is most suited for traders that have adequate time all through the day to analyze, execute and monitor a trade. So, decide what suits you more as per your schedule.