Day trading involves foreign exchange deals that are generally closed on the same day. Short term trading is attractive as it offers higher returns, but at the same time dangerous as well. With the advent of internet technology, day trading has become extremely popular among investors and stock market players. Normally Forex day trading involves buying a currency at the prevailing rate and you feel that it is rising up towards the end of the day. As soon as the currency value rises, you sell it off making a profit for yourself.
Forex trading, however enticing it may seem, is not foolproof. People usually indulge in cross currency trading. The trick here is to choose your risk quotient by following market trends and doing some research on your own. No matter how much perfect you think your strategy is, you are always advised to trade with caution.
1. Forex trading is not your shortcut to wealth, no matter what you have read on the internet.
2. Do not risk more than 1% of your capital on a single trade.
3. Keep realistic expectations before you starting your trading and be fully aware of the market conditions.
Take help from an expert who is dealing into day trading. When trading Forex, you should avoid thinking it is a shortcut to wealth overnight. You can be successful in Forex trading if you learn and improve every day.