- What is Day Trading?
- Basic Rules for Daily Trading
- What is the difference of Day Trading and Passive Trading?
- Day trading at work is a great idea?
- Forex is a short-term strategy?
- Forex Traders Should Constantly Monitor the Market?
What is Day Trading?
Day trading is commonly listed as the most active for a trading strategy, to the point where some even refer to it as “active trading”.
When it comes to day trading, the name implies plenty, as it centers on buying and selling currencies within the same trading day.
There is a “get in, get out” backbone to day trading, as positions are closed out during the same day in which they are adopted.
Generally speaking, day trading qualifies as an advanced trading method, with it traditionally being adopted by professional traders, market makers, and investment specialists.
For novice traders, this probably isn’t going to be a strategy that you are going to want to jump headfirst into, so education is key here, as the general pace and feel of this Forex trading strategy aren’t going to be for the faint of heart.
Basic Rules for Daily Trading
It is a well-known fact that the Forex market is volatile; therefore, setting some strict rules to follow during daily trading is essential.
Here are some points you may wish to add on your checklist:
- After the market opens, avoid trading during the first hour
- Determine the entry and exit prices and stick to your plan
- Decide beforehand if you are going to wait for the stop-loss trigger or exit instantly to reduce possible losses
- Invest small amounts of money, which you may afford to lose if unfavourable market conditions arise
- Figure out the most liquid stocks by following the news and technical analysis
- Allocate enough time to read the latest reports and choose trending instruments
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What is the difference of Day Trading and Passive Trading?
Trading these days are mainly done in a short term, or what is known as “Day Trading” or “Aggressive Trading”. Meaning that trades are bought and sold within a short time frame.
Day Trading is done with highly liquid assets. Meaning that the value of the traded assets can change a great deal in a short time.
This enables large profits to be earned, and therefore very popular to traders.
Long-term Trading is called “Passive Trading” and involves tradings in time frames of months or years.
In the hopes that the value of the invested asset, will increase overtime.
Day trading at work is a great idea?
It is a well-known idiom that the more the merrier unless it is about trading with hundreds of potential distractions.
Usually, such practice leads to significant losses and may harm your trading performance.
Each trade requires a strategy behind it.
It is essential to make sure that you are well prepared to execute your trade when the right moment comes, and that nothing can distract you.
However, it is also normal to learn from your own experience; therefore, do not forget that there is a risk-free solution.
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Forex is a short-term strategy?
The Forex market is indeed volatile, and asset prices change rapidly.
However, there are still existing long-term trends, and professional traders often prefer placing durable orders, bearing in mind the possible market moves.
Having a robust strategy and analysis in place are critical factors for improving any trading strategy based on confident forecasts and smart predictions.
Enough with trading the myths, it is time to trade facts.
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Forex Traders Should Constantly Monitor the Market?
The Forex Market is open around the clock. Irrespective of this, traders should not necessarily be online 24/7.
With the variety of tools offered by trading platforms today, it is unnecessary for traders to manually track market changes and invest all their time in this process.
Professional traders prefer closing their positions or leaving them with a profit and stop loss orders before ending a trading session.
There are also multiple mobile applications, which by sending the relevant signal on traders’ mobile devices, may notify them regarding significant moves for preferable asset classes.
Most of the trading strategies are chained to appropriate market moves, which usually depend on important economic events.
By following these events, traders can easily choose the most suitable trading hours to implement their trading strategies.
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