Day Forex Trading Secrets, Precautions, Essentials, Tips and Points to Remember
Daily Forex trading is also called buying and selling stocks and currencies on a daily basis. Whatever one buys during the day, they have to sell it today or whatever they are selling today, they have to buy it today and most importantly during market hours from 9 am to 3. pm.
Advantages of daily Forex trading for you
In Forex day trading, the trader gets a margin on the amount of his balance means that he will get more leverage on the amount of his available balance to do Forex daily trading, and this concept is known as margin trading in Forex.
Trading in Forex on margin is possible in Forex day trading and not in Forex delivery trading. The amount in the margin that a trader will get depends entirely on his Forex broker or online Forex system brokers.
Some brokers provide three to five times the amount of the trader’s account as additional margin. If the trader makes the margin, he must win the open Forex trades on the same day.
This means that if the trader buys shares or currencies, he must sell shares or currencies, and if he sells shares or currencies, he must buy shares or currencies, and this is before the closing date of the day in the Forex market.
Another important advantage of Forex day trading is that the trader has to pay less amount of brokerage in Forex day trading, compared to long-term trading. This process depends again from one Forex broker to another.
In Forex day trading, a trader can buy and sell in what is called short selling which he cannot do in long-term Forex trading.
What are the basic requirements for day trading Forex?
To become a successful Forex day trader, this requires the following set of things and requirements:
1) A computer connected with the Internet
If an individual needs to do it himself, he needs a computer with a certain speed of good internet connection. The internet should not be slow and should not have intermittent issues,s, especially in Forex day trading.
2) Forex demo account
An individual needs to open an online Forex demo account with any of the online Forex brokers.
There are a few points to remember when you open a demo account online:
- a) Make many and many inquiries and try to get low brokerage trades.
- b) Forex brokers should be discussed about the margin that each broker offers.
- c) Knowledge of money transfer, the money transfer process should be reliable and easy:
Transfer funds from the trader’s bank account to the demo account and back.
Some of the participating Forex demo accounts have a savings account that makes it easy for the trader to transfer money from his savings account to his Forex day trading account.
- e) The trader should inquire about the fees for the services of the Forex platforms and about any other hidden fees that may exist.
- f) Also consider the reliability and ease of contacting the Forex broker in the event of the sudden closing of deals or technical problems.
Why should a trader practice day trading before starting trading?
It is important for a trader to practice or trade Forex on paper before starting actual Forex day trading and here are the reasons why:
1) It is very important for a trader to know how to place buy and sell orders in his trades, and this will become very familiar and ideal about using his Forex trading system.
2) The trader will gain confidence in himself.
3) The fear of trading should fade away because it is very important to banish the fear of the trader while doing Forex day trading.
4) The trader will become active to enter and exit trades. Because it is important for a Forex day trader to be very fast in entering and exiting open positions.
What are common Forex day trading mistakes and how does a trader avoid them to make a profit?
1) The trader does not jump into the trend too early
Rather, he waits and obtains the paper confirmation in order to change the trend, then plans and conducts his trades, whether buying or selling, as this may lead him to lose his capital.
2) The trader does not wait for trades for long
When the stock does not move up or down in any deal, it means that it has a stable price and most of the time it is moving at a very low price, so the trader must exit that deal and look for another Forex deal.
3) The trader should not change his direction in the fluctuations of the number of currencies or stocks
In some matters, the trader enters into a Forex transaction by seeing the quantities and volume of buying and selling operations.
As judging the success of the deal by seeing a larger purchase volume and then a selling quantity, it is inaccurate, but it is better for the trader to wait and realize the position of the deal correctly, and then take appropriate action.
4) The trader should warn against the takeover of government companies
Suppose that at the beginning of the trading day before the start of the Forex market, that the trader must read and see the news of any government company that has acquired any other company or part of it if he sees that in the best direction, that is good.
But if the takeover volume is large and exceeds expectations, this will turn for the worse and the trader will have to get out.
