Forex day trading is a popular way to try and take a piece of the 3 trillion dollar a day Forex market. To tell you the truth, I prefer longer duration trades better than day trading, but in this article I’ll share some tips on how to make the most of this trading strategy.
5 Forex Day Trading Tips
1. Set Stop Loss and Take Profit prices for each trade – You need to be a machine when it comes to day trading, and the best way to do this is to set a Stop Loss and Take Profit price for each trade. This will save you a lot of time.
2. Get a commission discount – If you’re going to go day trading, you might as well get a commission discount from your broker. You have every right to ask for a discount because as a day trader you will be making a lot of transactions which is just the sort of trader brokers love to keep for themselves. This will save you a lot of money.
3. Trade without emotions – Forex day trading is an emotional process, but you need to fight against that because with trading, emotions mean mistakes. Costly ones. You need to trade with your head and not your heart.
4. Trade currency pairs you know well – There are many currency pairs to trade, but a good Forex day trading strategy for you would be to stick to pairs you know very well and are familiar with their countries.
5. Trade with a software by your side – Trading blind is always a mistake. Doing it when you’re day trading can be financially destructive. Always trade with a software to help you make the best decisions. Even a single trade a day can mean hundreds of dollars of extra revenue each week.
Above all, always trade money that you can afford to lose since that will keep you trading from your mind and not from your emotions. I wish you the best of luck with your trading.
Source by John J. Drummond