We often hear the term ‘day trading’ today but just what is day trading?
In very simple terms a day trader buys and sells with a very short investment horizon which is typically measured in minutes with trading positions being opened and closed within the same trading day. Day trading is particularly suited to high volume, volatile markets such as the Forex but is certainly not limited to currency trading. It is for example very commonly seen in the equity markets, although it tends to be seen on the more volatile exchanges such as the NASDAQ, rather than the NYSE or AMEX.
The principle is simply to spot an opportunity and then profit from it quickly getting in and out of the market with just enough time to make your profit and too little time to risk the market turning against you. For example, you might open a position at 11:00 am and close it out just a few minutes later at 11:07 am to take a small but quick profit and repeat this process as many as a hundred times in a single trading session.
Today this traditional definition has been widened somewhat and we now also refer to the practice of trading from home through an online broker as day trading. And, just to complicate matters, the term ’swing trading’ has also started to appear recently to refer to traders with a slightly longer investment horizon of anywhere from one to five days.
Day trading in its truest form (buying and selling with a very short investment horizon) is a risky business and is not something which you should try unless you know exactly what you are doing as, while it can be very profitable, it can also produce very large losses very quickly.
Although we talk about ‘investment horizons’ it also needs to be understood that day trading is not the same as investing and you will be working to very short time frames during which you will need to be glued to your computer screen jumping onto the wave of a trade as it gains momentum and the jumping off as it crests in order to ride the next wave. Spotting the waves as they roll in and knowing just when to jump on and jump off requires both skill and practice.
For those who enjoy the excitement of the roller coaster ride then day trading can be both exciting and profitable but it is not something for the novice forex trader and should only be contemplated once you have cut your teeth in the world of currency trading and gained a fair amount of experience.
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Forex Trading for Free-Long as You Want
I'm sure if you have ever done a search for or even thought of starting an online business you have probably ran into a ton of forex information.
But what is Forex? It's an abbreviation... That stands for the Foreign Exchange, or FX for short. In simple terms it allows you to buy one countries currency with another countries currency. It's done up in pairs: " in other words" you would find yourself a broker, much like how things are done trading on the stock market. But if you are new to the whole forex system, the best thing for you to do is practice forex trading for free first.
And what I mean by that is... You start off with Play Money " also known as paper trading" you go ahead and pick out your stock, watch over it for a period of time, to see how well you did and how it performs. But the most important thing is you don't actually buy the stock. "at least not yet!"
Once you have done a few runs of practice with your paper stock, and are starting to build that confidence up, then if you want you can go for the real deal.
A bit of Warning... Now you may have made some good money, while trading for free... because you were using fake money... it's a whole different beast when you start throwing your real money into it!
Reason: I'm sure you can figure this one out... You had no emotional ties to the fake money so you felt liberated to be more risky and it paid off didn't it. What it all boils down to really is that you need to find your system that has proven itself to you.
The number one problem that people have with any type of investing is their " EGO" nobody likes to be wrong or feel stupid... So the most likely outcome is that they either rush in totally blind or stay in way to long. Either way it can be a costly mistake.
Getting back to Emotion... This is the single most Biggest Profit Destroyer! You will have to learn to take emotion, ego, greed etc. out of all your trading equations, if you ever plan on making a living at trading.
Before I end this... You should be aware that there are a lot of automated forex trading software on the market which will allow you to practice forex trading absolutely free, the banner below this page is a prime example and probably one of the best if not the best out there now.
The biggest advantage of having a well established program is that it will take all the emotion out of the equation. So this makes it your best chance to make some real money trading forex, or anything else for that matter. "Remember" before shelling out your hard earned cash to trade in the forex market, get some free practice under your belt, and do it for as long as you want until you start to feel comfortable with your decision making.
" You'll know when it's the right time to start throwing some real money at it!"
Click on the banner below to get started.
But what is Forex? It's an abbreviation... That stands for the Foreign Exchange, or FX for short. In simple terms it allows you to buy one countries currency with another countries currency. It's done up in pairs: " in other words" you would find yourself a broker, much like how things are done trading on the stock market. But if you are new to the whole forex system, the best thing for you to do is practice forex trading for free first.
And what I mean by that is... You start off with Play Money " also known as paper trading" you go ahead and pick out your stock, watch over it for a period of time, to see how well you did and how it performs. But the most important thing is you don't actually buy the stock. "at least not yet!"
Once you have done a few runs of practice with your paper stock, and are starting to build that confidence up, then if you want you can go for the real deal.
A bit of Warning... Now you may have made some good money, while trading for free... because you were using fake money... it's a whole different beast when you start throwing your real money into it!
Reason: I'm sure you can figure this one out... You had no emotional ties to the fake money so you felt liberated to be more risky and it paid off didn't it. What it all boils down to really is that you need to find your system that has proven itself to you.
The number one problem that people have with any type of investing is their " EGO" nobody likes to be wrong or feel stupid... So the most likely outcome is that they either rush in totally blind or stay in way to long. Either way it can be a costly mistake.
Getting back to Emotion... This is the single most Biggest Profit Destroyer! You will have to learn to take emotion, ego, greed etc. out of all your trading equations, if you ever plan on making a living at trading.
Before I end this... You should be aware that there are a lot of automated forex trading software on the market which will allow you to practice forex trading absolutely free, the banner below this page is a prime example and probably one of the best if not the best out there now.
The biggest advantage of having a well established program is that it will take all the emotion out of the equation. So this makes it your best chance to make some real money trading forex, or anything else for that matter. "Remember" before shelling out your hard earned cash to trade in the forex market, get some free practice under your belt, and do it for as long as you want until you start to feel comfortable with your decision making.
" You'll know when it's the right time to start throwing some real money at it!"
Click on the banner below to get started.
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