InstaForex has put together a series of emails that we believe will improve your trading skills and help you get one step ahead in the market. This article is dedicated to providing you with information on the ‘Advantages of Day Trading’.
What? Who? Why? When?
Position traders and swing traders often hold trades overnight or have open orders but day traders make their money in short-term trades and close them out by the end of the day. It’s a style that works for people who have strong mental focus but don’t like to be making and losing money when they’re not at their desk.
Day trading requires a keen sense of momentum and the willingness to play both sides of a trade; getting in and out quickly. Trades can last anywhere from minutes to a few hours.
Day traders often look for short-term catalysts like economic news and data. They try to get an edge in a fast market. Another method is to employ a certain type of technical analysis that generates buying and selling signals.
The lifestyle of a day trader in forex is advantageous. The forex market is open 24 hours a day and 5.5 day a week so he or she can work whenever it’s convenient. After booking a profit, he or she can close out, shut down and move on to whatever else is important. It’s a glamorous lifestyle.
Day trading isn’t easy though. It requires good nerves and focus. Like all types of trading, discipline is key. Not every trade is going to be a winner and not every day is going to be a success. The trick is to be able to bounce back confidently. The best part of day trading is that you’re able to leave your work behind when it’s all done. With that in mind, it’s important not to dwell on what happened in the previous day. That will keep you from getting too high or too low.
At any time you can upgrade your Account to a Standard Account and receive a Personal Account Manager and additional benefits.
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