Day traders spend their working day analysing the Foreign exchange market opening and closing their positions before the end of the play. Here are 5 tips help you make money.
1. Choose your trading currency wisely:
Find a small number of currency pairs that you are suited to and find a broker who deals in these pairs. It is better to concentrate on just 3 to 5 pairs rather than have reams of charts with positions open on them.
2. Try your strategies away from live account:
It is important to get a feel for the patterns in the different currencies, and find out how they behave on demo accounts before throwing real money in to market. The demo software mirrors the real trading software so you can try your strategies out first before implementing them on the real market.
3. Do your homework:
Study the fundamentals of the market, learn when to buy and sell and use stoploss functions to keep your risk management tight.
4. Equip yourself fully:
This means having a decent internet connection to begin with. As your trades will be relatively short and rely on incoming data feeds it is important that you do not suffer any delays as a result of a slow internet connection.
5.Keep your Business head on:
When entering the world of day trading you should always be more mindful of the risks than focused on the profit. Keep a trading plan, treat Forex like a business it is and always know how much you can afford to lose on any given trade.