Day Trading FOREX
At first it seems strange that in market that never closes, one of the biggest
growth areas has been FOREX traders you day trade. However, on closer
inspection, the popularity of day trading FOREX is far more understandable.
What is day trading FOREX?
Day trading FOREX is where you buy and sell foreign exchange in the same day
so that you close out your position and have no overnight position in any
currency (other than your base currency).
How does day trading FOREX work?
In order to be a successful FOREX day trader you need to implement a good
foreign exchange trading strategy. Although not always the case, in 99% of
cases FOREX day trading relies heavily on the use of analytical indicators and
FOREX charts – as opposed to fundamental indicators, which tend to be more
long-term investments. Making use of the analytical indicators and FOREX
charts, the trader can tell what immediate gains and losses can be made with
their chosen currency and react to such in seconds. Keep in mind, however, that
if you wish to day trade like this you will need to have constant access to the
Internet.
Day trading and leveraging
One of the key components to being a successful FOREX day trader is the ability
to leverage against your FOREX brokerage account. In most cases FOREX
brokers allows accountholder to leverage as much as between 100 and 200
times their current account balance. Using this it is possible to make immediate
gains (and losses) so that by the end of the day the trader has made sufficient
profit to liquidate their overnight position.
What is a ‘day’?
This is actually the most fascinating part about online day trading FOREX,
because neither the Internet nor the foreign exchange markets ever close, a day
trading foreign exchange trader can pretty much chose whatever hours he or she
chooses to constitute a day trade. For this reason, if no other, day foreign
exchange day trading can be very enjoyable – even if it is only as simulated
computer game.
