A few words about day trading on Forex

Let`s look at the meaning of the word "day trading." Intraday trading is another way of saying "day trading" and it means a trading within one day.

Broker`s staff, traders, and all people involved in trading within one day are called day traders; and the type of trading, day trading.

Day trading is popular among those who prefer dynamic and decisive actions. Some market participants like to perform various operations on the forex market daily. Using this strategy, traders have an opportunity to avoid overnight commissions. The commission is taken for the deal rolling over the night.

Despite some difficulties, this type of trading is widely used by the market participants. It attracts both professional and beginner traders. Day trading makes it possible to gain profit for a short period of time using a small sum of money.

To be successful in day trading, it is necessary to make only one right step: accurately analyze a currency pair price movement. There is a large amount of external factors that influence the speed and direction of the forex market. To achieve success, traders should always monitor the situation on the market, analyze and compare facts, which have an impact on prices, as well as make forecasts of a trading instrument movements. Besides, traders should quickly react to events to determine the point to enter or exit the market. In fact, it is possible to receive income avoiding serious risks. Patience, attention, and skills in technical analysis will help traders do it.

Let`s see what strategies are used in day trading.

The first one is scalping. Scalping suggests opening of short-term deals which may bring a lot of small profits.  Usually, the profit amounts to several percentage points. Using this strategy in day trading, market participants may earn thanks to big trade turnover.

Another well-known strategy is news trading. Traders who choose this strategy should always be on top of the current market events. Besides, the market participants should compare and analyze currency behavior in various situations. This strategy is mostly for those traders who are skillful enough in fundamental analysis.

Pullback trading is the third day trading strategy. It is recommended to open deals against the main trend when the market activity is not very high.

A beginner day trader should remember not to open positions at the beginning of the trading day that is the first 20 minutes after any session is open.

The fact is that during these 20 minutes, the deals rolled overnight are in play and most traders are in panic. In this situation currencies are not stable and it is difficult to predict their movement.  It is better to start trading after the market stabilization.

In general, day trading can bring high profit. That is why market participants should know how to combine these intraday strategies to be successful on the market.

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