This might sound a little repetitive if you've read all of my blog posts about the Forex market, but it seems like every commercial you see on television about trading the Forex is touting day trading as the easy way of trading the Forex. There is no easy way to trade the Forex market, and day trading Forex currency is definitely not for the beginning Forex trading. Day trading is an advanced strategy and shouldn't be jumped into by inexperienced traders, regardless of how easy any commercial makes it appear.
Day trading the Forex might be a popular fad style right now, and there probably are Forex traders who make some decent money with this style, but the very nature of day trading with all the short term trades makes it more difficult to have accurate technical analysis of the upcoming trends.
You may avoid most of the major losses by having such short term trades, but you'll also miss out on any major breakouts that could have made you far more money with a long term strategy.
The same leverage that allows for decent profit to make on a lot of short term trades is the same leverage that can also cause you to lose money on a lot of short term trades. Some inexperienced traders tend to believe the short term trades act as a hedge to protect you, but this isn't the case. Day trading is not any safer than long term trades. If anything, they're more dangerous.
Day trading is all around the short time, and requires an enormous amount of attention, skill, and concentration. While there are probably many Forex traders who prefer this method, the real money to be made is learning how to use technical and fundamental analysis on longer trades where you can take advantage of channel breakouts.
Without ever taking advantage of the breakouts in the Forex market, day trading Forex currency will never be able to match the profits of traders who have systems that allow them to take advantage of long term runs in the currency market.
While there is certainly a place for day trading the Forex, there are just other Forex trading systems that could offer more profits with less risk.
If you're dead set on day trading, make sure you understand the intricacies of the Forex market first to make sure you understand the markets before jumping to advanced Forex trading strategies like day trading.
| And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/ From Jason Fielder: Founder, ForexImpact.com |
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