Monday, July 28, 2008

Day Trading Forex Currency

Right, day trading today. People are very interested in the concept of day trading. And i think there are at least few reasons for this. Before i will go into details, let's define day trading, what it really is.

On Forex day traders are guys who make a lot of trades (like over 10) in a single. Each of the trade is closed by the end of trader trading session, on Forex it usually means turning your computer off. Note that this is not the same as scalping. The only similarity between scalping and day trading is that, a lot of traders fail there.

Main resaon for this is that traders are tempted with huge profits, when doing day trading people are almost always using huge lavereages, like 100:1, it means buying 10 Lots with 10 000$. I think you can easily see how much one PIP is worth then, yeah it is 100$. It seems great at first, looks like a quick cash, but consider the fact that you only need 100 PIP move in the wrong direction to meet mr. Margin Call.

In reality when you trade on such high leverage it looks like everything is happening with a speed of light, while in fact it all happens with a normal speed, it is this ridiculous leverage that makes things harder.

Next thing you need to consider when you want to do day trading on forex currencies, is that not every broker will be happy with what you are doing, they may close your account or limi your leverage if ... you will start making money. So chose your broker wiseley checkout Forex forums and read brokers reviews make sure they allow day trading.

You may now think, wow day trading is hard. Well in fact it really is harder then you think. I am not saying it cannot be done, i am not saying you cannot earn like 200% a month. I am just saying that success with day trading want happen overnight, if you focus on it and commit to becoming day trading the success will come with time and experience.

51 comments:

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Sabrina Thomas said...
This comment has been removed by the author.
Teena robert said...

There are so many forex day traders. I have seen a common thing in all forex day traders that they all are very active and very alert, and really they must be like this, because Intraday Forex trading is very hectic and very risky job. A single mistake and you have to bear a big lose. If really someone doesn't know much about Forex, then he/she must join Learning Forex.

Simon Grimshaw said...

Trading is a battle between you and the market. And while you might not be a financial professional, that doesn't mean you can't win this battle. Every day, millions of ordinary people around the world wake up, turn on their computers, and try to make a living by trading the financial markets. Some are successful, some fail, but the possibility of hitting it big attracts many to the business.
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Boris said...

Mr. Margin Call!! :D thnx!

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Thomas said...

Forex trading is very sensitive and dangerous area! wrong investment can drag to a large loss.
Anyone who trade Forex must be very consistent after all what is happening in this market.
To begin trading forex I highly recommend to Learn Forex well, to practice using a demo account and only then start trading.

fxTrader said...

Learn to trade forex (foreign currency exchange) is a lot easier than many beginner forex traders may think. It takes a little education, which you can find on our Get Educated pages and it also takes practice. To begin in forex trading without first simulating the trading experience is a big no-no

Markus Heitkoetter said...

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Luisana Maria said...

There are so many forex day traders. I have seen a common thing in all forex Day trading that they all are very active and very alert, and really they must be like this, because Intraday Forex trading is very hectic and very risky job. A single mistake and you have to bear a big lose. If really someone doesn't know much about Forex, then he/she must join Learning Forex.

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Alfrick Opidi said...


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Lisa Anwood said...

Great share.. This post really helps the beginners to learn more about day trading.

The term "day trading" is a widely misused and misunderstood term. Real day trading means not holding on to your stock positions beyond the current trading day; in other words, not holding any position overnight. This is really the safest way to do day trading because you are not exposed to the potential losses that can occur when the stock market is closed due to news that can affect the prices of your stocks.

Have a happy trading :)


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Digital Equity said...

For day trading i always support major currency pairs and good spreads and lower slippages. The most important thing for a small trader like me is the broker deposit and withdraw without any delay and charge which Trade-24.com provides me. You trade day or swing, all the conditions of the broker is for the clients only. This broker as per my knowledge is the first broker who thinks about their clients and wants to provide best service towards the clients to make them profitable. Simply a masterclass broker for day trading.

Digital Equity said...

Day trading is an important part of overall trading process and in the whole world there are about 80% traders who prefer day trading as their main strategy of trading. Personally i am also a day trader and i always feel great about trading daily as the profit and losses are short term. Day trading requires some certain features like lower spreads, swap free and instant execution features which i feel is the most important thing for a day trader and i prefer ECNCAPITAL.com as one of the best broker to provide all these facilities required for a day trader to succeed.

Rahim Sterling said...

Trading currencies and stocks have some similarities and differences. For day currency pair you should concern about some factors like, focus on a few currency pairs (like the dollar and euro for example) that you're comfortable monitoring consistently. Before jumping into currency trading, use a broker's practice software for three to six months at least.
Find a mentor or experienced trader to follow. Traders on investing social networks such as StockTwits will often publish their currency trades throughout the day. Choose a trading strategy to follow and stick with it. Experienced retail investors said they often would get hurt when they decided to switch strategies. For currency trading ECNCAPITAL.COM helped to a lot with their professional live support & software.

Digital Equity said...

Trading currencies and stocks have some similarities and differences. I added this section to discuss this further and provide traders with basic information necessary to day trade the forex market. Today, the foreign exchange market, also known as “FX,” provides traders with some advantages absent from the stock market, so it is worthwhile for them to learn a bit more about the biggest financial market in the world. MXTrade is offering best services in forex market.

Md Torikul said...

Trading in stock market and Forex both are different from each other. Forex has currencies of different countries and are the main ingredient of Forex market. We can trade here by abiding at home as a part time trader or as a professio trader. Forex has more facilities that are not available in stock market. A good broker provides vast facilities for their trader like I am enjoying with Trade12 having low spread and high leverage facilities. They cash back withdrawn money in jut time.

shahriar mahmud said...

Day trading is good its allows you to manage your time as you want. Day trader should be alert all time and they need to be active. Because forex trading is very risky. I feel very good about daily trading. My broker trade24 providing all kind of trading facilities and services for all day traders to make them profitable. The best environment to work and withdrawal process is very fast.

Phil Horne said...

For every 10 traders that come to markets, at least 7 of them want to ‘day-trade,’ or as we call it in the forex market, ‘scalp.’ Even though many of these traders are still learning the market or are very new to trading, they know they want to short-term trading.The rationale behind this desire makes sense. After all, for most things in life the biggest rewards are for the hardest workers; those exhibiting the utmost of control and discipline long enough to properly implement their plan or strategy.TryMarkets is really providing good facility for scalping.

Md Torikul said...

Forex is being a popular outsourcing system day by day. It is a big opportunity for the students and women. Because here one can trade by abiding at home. One can trade here professionally and as a part time job. I generally used to scalping. My broker Trade12 take no set up fees from their clients. That’s why I can enjoy my exact profit from here.

Mustakin Raja said...

Bewildering. Really it was an amazing than major laid out. Grateful to you your effort. I really like the article. I like Options trading since . In any case, yes options can give all the in like course clearing up time to your days absolutely when you have enough perceiving how to trade. Other than broker like lxmarkets can make people to do options trading for less requesting pay.

Md Torikul said...

Forex is the largest economic business in the world. It is being popular day by day. It is being popular to the young students more. Forex is a big market where brokers work as a media. We can trade with currencies by Forex trading. I am a trader of Trade12 having high leverage up to 1:400, low spread in most of their pairs and quick execution as well as no set up fees. Their platform is really awesome with all technical tools.

shahriar mahmud said...

Its right that peoples are very interested in the concept of day trading. Day trading are suited for forex traders that have enough time throughout the day to analyze, execute and monitor a trade. If you want to be a day trader, then you have to analyze the markets at the beginning of the day. Traders get trapped in many ways for day trading mistakes. You will be allow for day trading with various opportunity and services with the broker trade24.

Md Torikul said...

Traders can trade with Forex as a part time job and professional business. Mainly Forex is a profession. Forex is being popular day by day among the traders. They are being added with this market to develop their earning condition. But most sadly to say that most of traders are getting loss for their scarcity of knowledge. Among them some have knowledge enough but can not be able to trade with market for having shortage of money. For them Trade12 are offering 30% initial deposit facility with other facilities like high leverage, low spread, quick execution and no set up fees.

Rahim Sterling said...

The best time to trade on forex is when the market is most active. When more traders are active, trading spreads the difference between bid price and asking price tend to narrow. There is another good reason for trading when the market is most active: volatility. My broker is TryMarkets who gives me access to the forex market 24 hours a day and 5 day in a week. That is why I can easily earn profit from forex. So my trading life is so much comfortable.

Md Torikul said...

In this digital era of science outsourcing systems are becoming more popular day by day. . People are being added with this market day by day for it’s special feathers. There are some polish currencies traders prefer more to trade. Spread is likely to a common factor here that varies from broker to broker. I am a trader of Trade12 Trade12 provides spreads as low as 2 pips on the Silver account, and also offers fixed spreads starting from 1 pip on Platinum account. Aside from the benefits that traders get to experience by trading with Trade12, they can also enjoy lower fees on all of their transactions.

Hasan Forex said...

Day trading is quite harder. I trade forex trading but with options. Option trading is the best way to trade forex now a days. I trade with option trading since 2005. I am currently trading with lxmarkets.

Md Torikul said...

Day trading is another short time trading style but unlike scalping you are typically only taking one trade a day and closing it down when the day is over. These traders like picking a side at the beginning of the day, active on their bias and then finishing the day with either a profit or a loss. They don’t like holding their trades overnight. But from my first day of my career I have been using short time strategy. Because as a scalper I get the best support from Trade12 broker.

Michel Stuart said...

There are two types of trading in forex. Day trading and option trading. Option trading is simpler than day trading. You don’t have to make too much trading strategy for making money here. You can use some indicator to be fruitful in this type of trading. Day trading is real trading. You have make proper strategy; maintain rules, time frame and other factors. To become successful forex trader broker plays an important role. This is the reason why I elect AAFX.

Digital Equity said...

Day Trading is very important for a trader. I think day trading is very profitable trading style as well. I think position size trading is not quite profitable as day trading and scalping is quite riskier in comparison to day trading. I am trading for last 7 years but never found good day trading condition based forex trading broker but at last i found AAFX. They are so far the best forex trading broker i have ever traded with. I am really blessed and glad to have this broker.

Md Torikul said...

Day trading is speculation in securities, specifically buying and selling financial instruments within the same trading day. Strictly day trading is trading only within a day such that all positions are closed before the market closes for the trading day. Day trading is a nice trading system but I prefer more scalping. Trade12 is the best broker for scalping with it’s blessing facilities. It provides me the lowest spread and high leverage facility.

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