Forex day trading has some advantages over other longer term currency trading strategies. Although the fast and furious nature of slipping in and out of the market for quick trades can be stressful, at least when you stop for the day all of your trades are closed and you know where you are. You do not have to leave trades open, not knowing what will happen while you are sleeping and the foreign exchange markets are continuing to trade.

Generally speaking, this strategy takes advantage of mini trends and daily fluctuations in price. You would only be aiming to make a relatively small profit on each trade when compared with long term trading, but of course you will be involved in many more trades. On balance the two strategies can be equally profitable. One is for short term gain and the other is for long term growth.

However, there is a higher risk involved in day trading forex currency when you compare it with trading on longer term trends. The market will tend to be much more volatile and unpredictable. Volatility can be measured by the amount of variations in price measured against time. It is hard to say for sure, but many people estimate that around 80% of forex day traders are actually losing money. You would not want to join them, so do be sure that you can handle the pace and know what you are doing with a good trading plan before you start. Essentially you need to be experienced in trading the forex markets longer term before you try out day trading.

Day trading forex currency can certainly work. There are many traders out there making a lot of money from it. However, it is important to understand that it does not suit everyone. If you are liable to crack and make bad decisions under pressure, it may not be ideal for you. But the only way to know for sure is to try it.

In the beginning it is a good idea to use a very cautious strategy and practice with a currency trading demo account. This way you can discover a good system that works for you, without risking losing the shirt off your back. It is important still to understand that when you go live the pressures will be different and so your results may be different too.

Do not go straight from trading with virtual money in a demonstration account into trading a standard lot size. When you are consistently successful in demo, graduate to the minimum size of real account to get some practice day trading forex currency under real market conditions, then scale up your trades gradually.

Author: James Roshwood
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1. Take breaks

You have heard this before, but do you do it? Just walking away from the screen for 5 minutes each hour can improve your clarity of thinking and therefore your fx trading. It is also good for your circulation and may help prevent thrombosis, a potential killer. Use a kitchen timer, stopwatch or a pop up reminder on your PC screen.

If you day trade forex and do not want to leave the screen with an open trade, be sure to take a break after every trade that you close, whether or not it was successful. This will help you come fresh to the next trade.

2. Join a forum

Forex trading can be a lonely business. Family and close associates are as a rule not interested and cannot grasp the highs and lows of your day. Becoming a regular user of an online forex forum or bulletin board makes you part of a community that can feel a lot like having work mates.

You will make useful contacts, have somewhere to boast of your triumphs and probably, from time to time, appreciate the support of other members when things are not going so well. You can also pick up a lot of trading tips and keep up to date on developments in the world of currency trading through membership of a forum. Be cautious not to spend too much time there, but check in for a short time most days to flick through the most recent discussion threads.

3. Check the forex news calendar

At the start of your day, be sure to check a forex calendar or news service for any announcements or reports that are expected during the day. Do not rely on your forum membership for market news. When you know what the day is likely to bring from the moment you sit down, you can plan your trading hours. You will feel more in control of your day and your trades.

4. Get exercise

Exercising the body keeps the mind as well as the body ready for action. Starting your day with a workout or run can give you a great energy boost. Exercise also releases endorphins, making you feel more positive. While you could take exercise later in the day, early or mid morning is the best time if you want your trading as well as your muscles to reap the benefit.

5. Get a life

Do not fall into the trap of letting your computer become your world. If forex trading takes over all aspects of your life,becoming burned out is almost inevitable. Schedule time with your family and friends, vacations and time for sports or hobbies. Take time to eat healthily too. These things will make the time that you do spend in front of your PC screen much more productive, so that you can day trade forex with less stress and more profits.

Author: James Roshwood
Article Source: EzineArticles.com
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