FX Day Trading - Don't Do it Until You Read This Article

Are you considering FX day trading? Many people attempt to pull cash out of the FX market this way. But is it the best way to trade or are there better forms of trading the Foreign Exchange?

Day trading is rapid fire buying and selling. Because this market is open 24 hours day, day traders will select a time frame when one of larger markets opens and closes. This is an 8 hour period. The most common is the London market. It tends to trend very well and gives-up 75 to 150 Pips per day.

Fx Trading

By rapid fire trading I mean trades are opened and closed from 1 minute to 5 minutes. Traders will end their day with no open positions. The hope is their account is larger at the end of the day than at the beginning.

So why the FX market? Why not just use the stock market? Well, as mentioned, the Forex is open 24 hours day making it easier for the part time trader. You can start in your free time.

You can make a living trading just one of the top currency pairs. Focusing on one gives the trader a very strong feel for how price of that pair moves throughout the day.

Stocks can be manipulated by large buyers. This causes trading software and technical analysis to fail. With the Forex, this is impossible as the market is too massive to be manipulated in any way.

This market can be traded using automatic software. This has been tried with the stock market but has proven not to be reliable.

Using this type of software is great for new traders who can't monitor charts all day long or don't have time to learn how to trade. You just turn them on and the program trades for you.

Leverage is another big plus. You can open a trading account with a discount broker for 0. Because of leverage, you may be able to trade up to ,000 with this deposit.

You need to be very careful doing day trading using manual techniques. Understanding how to interpret charts and indicators takes months of practice. Many people try and fail. Actually, it's been shown that 90% of people fail at FX day trading using manual trading.

I do not do day trading. I found it too difficult to make consistent profits. Instead, I dropped all of my manual trade methods and focus all of my attention on using software that tells me what to do.

In conclusion, if you plan to do FX day trading, be prepared to spend months practicing and losing money. After spending months trying to master this form of trading, I know that it's not for most people.

FX Day Trading - Don't Do it Until You Read This Article