Day Trading

I was searching for a good way to trade stocks, futures and options for a couple of years. I wanted something where I would have fast results. Something that doesn’t take long to show a profit or loss. Something that I could let go on the end of the day and have a good night sleep without any unease on my mind.

The answer was day trading, but their was something that withheld me to start day trading the stock market. It was the high investment you needed to start. You must invest at least $25.000 to have a go at the market.

Not having that kind of money that I could miss, I continued my search and finally in February 2009 at a wedding party in Belgrade (Serbia. off all places) somebody told me to take a look at the foreign exchange market.

Following that advise if found out that the foreign exchange market (or simply Forex) was exactly what I was looking for. It was fast, direct, exciting and needed no big investment. Me already familiar with stock trading needed no real intensive training, I could start immediately after reading a quick guide.

After currency day trading a couple of months I started to develop my own Forex day trading system.
I set boundaries:

• What is the best time to trade? The Forex market is a 24h market it has no real opening and closing time, this due to the time differences between the Forex countries. So you need to find out what the best time to trade is in your country’s time. The best time to trade is when most of the markets are open at the same time.
• What is my virtual close of the market, end of trade deadline? When you have recognized the best time to trade you should set a virtual end of market dead line for yourself. For example I live in the Netherlands and I set my close of market to 5 pm. This is when the London market closes. I close all my trades before 5pm, even when I am at a loss.
• What currency pairs should I trade? The currency pair to choose is something you should look at every day it depends on the spread, the volatility and market news.
• What is my daily goal in %? My goal is 15% profit, the second I reach 15% profit minus broker commission I stop trading for the day.

Now I am a happy currency day trader, following my own Forex day trading system. When 5 pm comes I know I won’t have any trades open. Sometimes I end the day with a loss, most of the times I end my trading day early because I reach the 15% profit quickly.

Currency day trading works for me, it is trading that best suites me and my lifestyle. I like trading but it is nothing more than a hobby to me. So it should be fun rather than nerve breaking.

For all you out there who would like to try currency day trading, keep in mind, that trading involves substantial risk of loss. So be careful and only trade with money you can miss.

Author: Don Miat
Article Source: EzineArticles.com
Provided by: Mobile device news