Day Trading-Should I Apply This Strategy In My Forex Trading?

In a term of global forex trading, everyone could benefits a huge of profits from this highly lucrative investment opportunity. But without any exception, everyone could be terribly losing also. Trading forex is alike as a journey to find a hidden treasure. One thing thats important to be carefully considered by forex traders, especially the new one is to choose which trading strategy is the most suitable for them to be applied in their trading system. We can presuppose trading strategy as a map to find the treasure. For they who are new to forex trading, without a direction, they will mostly end up with nothing in their hands but lost and regrets.

Traders may define their trading strategy in many ways. The basic trading strategy are mainly divided into four main trading time frame; short term trading (day trading), swing trading, long term trading (long term trading), and buy & hold investment. The first strategy mentioned are the quickest, and last are the most long time frame which could be reach years count. 선물옵션

Most forex traders, especially they who are already ‘expert’ in forex choose to trade with a short term trading strategy. Lots of new traders are willing to follow their system and expecting to be as successful as their successor. The problems are, many newbie don’t even know what’s day trading is, what things should to be considered before using it and how to do it right. In this article, i’ll try to clearly explain ‘what must traders know’ about this strategy so that at least there are questions answered…

Short term trading (Day Trading)

Short term trading or commonly known as day trading strategy is a trading (buying and selling) of forex / currencies which be done intraday. As forex market is opened 24 hours (by using brokers services which allowing traders to do so), we can assume that day trading is a trading which be done in less than 24 hours. They who use this strategy are called as a day trader. Day traders are tend to do trading with frequency throughout a day. They may trade twice, or maybe tens of times in a single day.

Day trading gives traders more control among the trade as it need no overnight hold exposure. Day traders are usually monitoring the market changes carefully and quickly reacting whenever something that according to his system is profitable or potentially loss so that they can focus on a higher winning percentages of trades. In exchange for its benefits, the disadvantages of using day trading strategy are concerning with the traders effort to be active in their trade and maybe the cost of brokers commission — if they are charging you by the frequency-based of commission.

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