Forex Day Trading

What is Forex Day Trading?With Forex trading now accessible to all investors thanks to the advent of Internet technology, forex day trading has become one of the most popular types of currency trading. Some traders – professional traders – have made forex trading their day job. They engage in what is known as forex day trading. As its name suggests, forex day trading consists in opening and closing positions – buying and selling currencies – within the same day. Usually, forex day traders try to take advantage of the fast-fluctuating currency rates, even if their movements are often smaller on a shorter term.The four major currency pairs have an average daily range of 104 pips, which represents $1,040 per lot – much more than other currency trading markets. With their longer “length of line”, they also offer more “swing trades” opportunities.Forex day trading is time-consuming and can also be money-consuming if you are not properly educated and trained in currency trading. To help you understand the ins and outs of day trading forex, Finotec offers you free fundamental and technical analysis education (see our Forex Trading Videos Section) as well as all the tools you need to analyze market trends, including a free demo account. As with stocks day trading, forex day trading can be done over the entire day, but it also can be done over a few hours, a few minutes or even a few seconds! Part of the skills of day traders lies in their ability to react quickly to the markets and make fast decisions.Different Types of Forex Day TradingAs mentioned above, some traders will enter and close positions within a few minutes – or even a few seconds (this method is known as “scalping”) – while others will maintain positions for several hours or even through the entire day. While some day traders combine these strategies or switch from one to another depending on current market conditions, most prefer to stick to one type of day trading.Forex day trading strategies can also be categorized according to the type of resources and data used by the trader. Some day traders for instance trade only on fundamental analysis. They wait for the release of certain economic indicators and data (payrolls, GDP, etc…) and trade the expected market swings. Others rely solely on technical analysis. Whichever type of trader you are, you must know always watch out for economic and statistical releases if you don’t want any surprises.A Few Tips for Day Trading ForexSkill has a big part to play in forex day trading. You should have a good understanding of the markets, their trends and their direction before you engage in this type of trading. You should also know how to read the information and use all the resources made available to you. Finotec has put together a series of forex training videos to help you do just that. Stick to your strategy. While this tip is true for almost all types of trading, it is even truer for day trading since you tend to spend more time in front of your computer and pay attention to the slightest move in either direction, which often prompts you to act and change your strategy. Whatever happens, do not panic. You should be aware that forex day trading comes with a certain degree of risk and accepting that risk means also accepting to lose sometimes. Make sure you have enough time on your hands. Most day traders are professional traders who have made a career of currency day trading. Others have jobs that allow them to devote some time to it during their workday. So make sure your schedule is suited to this type of trading. To start forex day trading with Finotec, open an account by filling out the form on the right. If you have any questions, one of our representatives will be happy to help you