Sound complicated? According to the method or system that you use to choose a profession, it may be the & 39;. L & 39; idea behind the day is that exchange rates are subject to fluctuations during the day - they rise and fall depending on who is the & 39; purchase, sale and east These are rumours. In fact, transactions in foreign currencies is probably the only segment & 39; No matter what type of & 39; stocks, currencies or futures trading market most affected by rumors and real-time , The real world what is happening. An economic operator advised that is fast on his feet can roll up profits by paying attention to what & 39; news is the exchange rate.
The currency market, commonly called the forex (short for Foreign Exchange), is the most liquid market in the world. The latest statistics say that every day on Forex is over $ 1.3 trillion U.S. dollars. That makes the currency more important, the most efficient market. Much of the reason for the liquidity and the volume of trade is the practice of the trading day. The difference between day trading and & 39; other types of trade is how long you hold your shares (or, in this case, your currency). During the day, you have nothing beyond the end of the day on the market. Think of it as a game in which the & 39; object is to keep trading cards back, more and more the value of your cards - but & 39; n have no cards in your hand at the end of the day.
Of course, since the foreign exchange market is 24 hours market, it is really no market closing - to change the rules slightly. The currency market is open from Sunday afternoon to Friday afternoon, for ongoing negotiation of all time, so you can choose your time to trade rather than & 39; be locked in Exchange calendar.
How you make the money & 39; in the day
People will tell you that the difference between a day trader and an investor is the length of time that each holder on their stocks. & 39; C is a superficial difference. The real difference is in the spirit & 39; short-term vs. long-term and liquidity. An investor buys something that & 39; he believes will steadily increase in value, and it holds over the long term. A day trader towers minute fluctuations in the currency market minute by minute the way a surfer rides a wave. Because you trade in lots of 100000, a small fluctuation can mean a big profit - or an enormous loss.
Limiting loss of the day
One of the most difficult concepts for new operators to grasp is that to limit the loss. Let& 39;s say you make an exchange for a currency that goes down because you think that & 39; it is near its point d & 39; support - the point where it rebound and begin to return. Instead, it breaks the point and continues to get off - you lose the & 39; money instead of doing so. You have a choice between two options - hold on it because you know it will start to return soon, or get rid of it and limit the amount of money & 39; that you will lose. During the day, the name of the game is to limit your losses and maximize your winnings - to decide & 39; advance how much you& 39;ll allow each business to lose before selling it, and then take & 39; s this limit. In the same d & 39; ideas, decide how much profit you want to make, set a sell order when the currency reached this point - and sell when it hits the mark.
Know what you& 39;re doing.
Day trading on the forex is like & 39; No matter what other company. People who make the & 39; money are those who take the time to learn & 39; the market and understand the ins and outs of trades that & 39; they do. Those who jump in feet d & 39; without first learning the terms, rules and market trends Forex priming themselves to lose - and lose big. Remember, it & 39; are not potential high returns without risk equivalent. Before you begin, take a course of negotiation, or read read read everything you can.
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