What is Day Trading?
Day trading is a type of speculative trading in which the trader completes all open trades during the day without carrying them over to the next day. In simple words, it is trading within one working day. Working with strategies of day trading allows you to learn quickly to analyze the state of the market, helps to better understand all the features of trading and learn all kinds of Forex analysis in a short time. This is partly the reason why day trading is so popular among beginners. Nevertheless, the shortest of deals of this type also requires from a beginning speculator some practical knowledge and his own experience.
What advantages are offered by day trading
It is not always easy to work with this trading method because a trader has to have good willpower, self-control and assiduity. In addition, it is important to be able to perform relatively monotonous work and not to be greedy. Nevertheless, the advantages of day trading as a method of Forex trading are obvious:
- The trader gets an opportunity to control all his risks easily.
- There are no gaps in the work;
- Such a speculator can always find something profitable to trade at the moment;
- There is always a convenient leverage;
- There is a large number of convenient trading tactics and strategies for day trading.
Day trading strategies – which one to choose?
Correctly picked trading strategy is the key to success on Forex, binary options or cryptocurrencies. Thus, for day trading, the most popular are considered to be the following strategies:
- Scalping strategies. Working on short intervals and minute charts. These strategies have significant leverage, but at the same time they carry high risks, psychological burden and relatively low income. To work with such strategies, the trader should have good training and experience.
- Strategies using hourly intervals. They allow to apply the analysis and increase the profit of deals.
- Strategies designed for several hours. It is possible to use not very high leverage in the work, they give the best profit and do not require a high psychological burden.
Nevertheless, one and the same strategy of several different traders can behave differently – it all depends on personal traits of a trader, his schedule and character. That is why even professional traders do not undertake to define the “most effective” strategy, because it should be chosen individually for each trader. Before you start your way on the Forex market, you should use the here list and choose a reliable broker.