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Understanding Forex Day Trading


RusefTrader

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Forex Day trading is system of trading on the foreign currency exchange market, where the trader begins and ends all trades on the same trading day. The trades are typically completed quickly, with the trader profiting from the changes in a currency exchange rate from time he buys and sells.

Depending on the method or system that the trader uses to pick the trades, it can be very complicated. Currency exchange rates fluctuate over the course of the day. Multiple factors change the rate many times per day. Some of those factors are other traders, world news and what current rumors. Day trading in the foreign currency market is affected by rumors, current events and news stories more than other types of trading in stocks, currency and future markets. Traders can maximize their profits by paying close attention to the current news and how it is affecting the currency exchange rates.

The foreign exchange currency market, also referred to as Forex, is the most liquid market in the world. Each day, the trading volume on Forex exceeds $1,300,000,000,000 U.S. dollars are. Forex is the world's largest market, partly due to the practice of day trading. Day trading differs from other types of trading in the duration between buying and selling the stocks, or in this case currency. A day trader sells everything by the close of the day's market. No currency is held over to be traded the next day. Whatever the trader buys must be sold by the end of the day or vice versa.

In actuality, the market does not have an end of the day. It is open 24 hours, there from Sunday afternoon to Friday afternoon. So the beginning and end of the trading day is defined by the trader, and not the market itself.

One thing to keep in mind when day trading is that the more frequently you trade the higher your transaction costs will be. This is why it is important for Forex day traders to use trading systems which can produce enough profit to overcome all transaction costs.

It is believed that the difference between a day trader and an investor is the duration between buying and selling. That definition is simplistic. The major difference is in the goals and perspective of the traders. An investor buys a stock believing it will increase in value over time, and expecting to hold for a long time so that increase can happen. A day trader buys and sells in anticipation of minor, short-term fluctuations in the currency market. Forex trading is done in large lots of 100,000. A small fluctuation in the exchange rate might not seem significant, however, it can be very profitable, or costly, when multiplied by 100,000.

Day trading on the foreign currency exchange has potential risks and rewards just like any other type of trading. Successful traders get to know the market and understand the ramifications of their trades. Traders who begin trading without an understanding of the fundamental and technical workings of the Forex market are destined to fail, just as they would in any business. High potential profit comes with high risk. Traders must be educated and prepared before they engage such the volatile, fluctuating market of day trading.

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I think most important point is skill to analyze the trend, and understanding with market behaviour, learn how the market work like as fundamental and also technical analysis and that also very important is about risk management, and money management, work as scalping or intraday trading is option and as trader have own choice to work with one system that suitable

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No matter you trade night or day, important is skills and knowledge you have learned with your practice.

If you have skills then you can work anytime without any issue.

I think also as trader need to understand with trend market because not always move on one direction, if not yet getting signal trading although already having opportunity to making trades but we also need to waiting on right momentum before making any decision
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absolutely right, it is important for traders to understand and can increase the generating abilities and understanding of trading. important for traders to take advantage of the changing times and technological developments.

All trader want to get improved, skill trading will never come easily but required long time process and learning, will good if follow one system trading and keep discipline with rules system, it will giving valuable lesson for long run if discipline is very much important here

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Yes we need learn to keep discipline in our trading, maybe forex trading is will higher risk if trader always reckless in tradiing and often violating rules money management, we need to understand if forex trading is not easy way to get rich at short time and we need to learn with practice and from experience we will get valuable lesson for us

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Yes we need learn to keep discipline in our trading, maybe forex trading is will higher risk if trader always reckless in tradiing and often violating rules money management, we need to understand if forex trading is not easy way to get rich at short time and we need to learn with practice and from experience we will get valuable lesson for us

 

We better learn forex trading and then focus building an appropriate strategy and a proper trade management plan, once enter in trading then stick with the rules and trade plan.

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We better learn forex trading and then focus building an appropriate strategy and a proper trade management plan, once enter in trading then stick with the rules and trade plan.

Keep discipline is very good habit for trader because this business actually required good system and discipline to obey all rules system and also money management, forex is not easy way to get rich at short time as trader must realized this matter.
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  • 1 month later...

I think most important point is skill to analyze the trend, and understanding with market behaviour, learn how the market work like as fundamental and also technical analysis and that also very important is about risk management, and money management, work as scalping or intraday trading is option and as trader have own choice to work with one system that suitable

 

Trend analyzing is important but understanding both fundamentals and technicals is a difficult thing in my opinion. I have basic knowledge on fundamentals and that's sufficient. For day traders expertise on technical analysis works better.

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  • 5 weeks later...

I think that the new traders should focus learning how the support and resistance works because it might helps them right in achieving their goals.

Trading with support and resistance is simple to trading analysis, some another using basic demand and supply analysis which also has similarly with support and resistance analysis, which as trader will focus when trend on equilibrium area which between demang and supply on balance, they will waiting breakout
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But in essence traders are in demand to have the ability to analyze the good and true if you want to achieve success in the forex. Therefore I always use Tickmill demo demo account to training trading skill that I have.

We should understand if forex trading is risky business and this is not instant to become rich from forex business, required hardwork and struggling to become success trader which utilized demo account is good for trained skill although only use virtual money
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We should understand if forex trading is risky business and this is not instant to become rich from forex business, required hardwork and struggling to become success trader which utilized demo account is good for trained skill although only use virtual money

With we already know that forex is very high risk that there is, so trader must be more active, and really really in the stages to learn to understand to risk we can manage well, so that we can survive in running forex trading, and its profit can be easily obtained

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With we already know that forex is very high risk that there is, so trader must be more active, and really really in the stages to learn to understand to risk we can manage well, so that we can survive in running forex trading, and its profit can be easily obtained

I think with more experience as trader can learn better, usually as beginner which still on learning stage, sometime they become confuse and seem always the market against their plan, this is process learning and if trader having weak mentality usually will easily to leaving forex because on desperation
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Yeah i got what do you want to say that is totally make sense, that is because the inability to make profit and instead reflected to their own performance, they prefer to see that the market or broker against them and cheated them. I can say this is quite normal but harmful act, should be changed through a better education about forex.

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  • 10 months later...

Where in we run this forex trading is certainly not a thing which where easy to run, forex business is a very big risk business that exists, so where we keep trying in skill maximal skill so that where we can maximal also where will run forex trading along with his instaforex. That certainly takes step process step by step to we can trade by getting maximum results

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  • 2 weeks later...

I think that the new traders should focus learning how the support and resistance works because it might helps them right in achieving their goals.

 

Support and resistance are always helpful and every trader who educates themselves learn them. But support and resistance alone is not enough. They are helpful but traders also need other tools to become profitable.

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For where we run this forex trading the way things we should be able to run this trading is the way where indeed we should be able to understand where the good and true trading performance so that we can better understand will the way of profitable trading performance. And where we plunge in a forex business this way things we should be able to run is our routine in learning in order to be able to trade able to get maximum results when will plunge in forex business with instaforex

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  • 2 weeks later...

Support and resistance are always helpful and every trader who educates themselves learn them. But support and resistance alone is not enough. They are helpful but traders also need other tools to become profitable.

that right, pay attention to market news too. Try to maximize forex economic calendar too. Forex economic calendar helps you to stay informed of the latest financial news and to be ready for the most sharp turns of market. Use all functions of FreshForex economic calendar: you can filter events according to their importance, select a country and time interval. Personal calendar settings are saved and available on your next visit.

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We must understand in advance where a good and true way will be the way of this forex trading, better we keep trying in learning on the run to be able to make us able to trade with more able to get maximum results when going to plunge in real trading with instaforex. Need a stage where learning on the run to be able to get maximum results

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