Day trading is perhaps one of the most popular on the Forex market. The rapid development of technology and information in real time opened access to this type of activity to many professionals. The major point is that during relatively short time intervals it becomes possible to extract impressive profits.
The Benefits of Вay Trading Are:
- It has eliminated the need to leave open positions for the night, thus exposing itself to additional risk.
- The whole cycle sometimes takes only a few minutes, and with competent trading, the profit can be quite comparable to investing money in “traditional” ways for several months.
- A specialist working daily on the Forex market may quickly increase the profitability of assets and significantly reduce risks. If you know these basic principles, you will be pleasantly surprised by means your account in a few months.
Day vs Night
Forex trading at night is different and major features of it go as follows:
- The currency market at night is classified as flat type trading systems. What does it mean? Almost all the time, the price change occurs within a certain channel or corridor.
- The main advantage of trading at night in Forex is the ability to predict events. Moreover, operations take place in such a fairly calm atmosphere. This can be explained currency exchanges do not operate at night.
- All activities take place in a narrow range of prices. Their fluctuations depend on the instrument used – these are usually twenty to forty points of the currency market.
- Intensive exchange rate movement occurs in the time interval of 3.00-3.30 am. Because Japanese statistics are published and Japan is the main industry player at this time. Fluctuations can become unpredictable. Many consider it prudent to stop trading at this time.
- You may use scalping because of the nightly simplification of market analysis. Nervousness and stress among brokers and analytics are lower, as the risks are less. A trader has the opportunity to earn more money even on large transactions, simply by increasing their number.
In order to practice day dealing, a really powerful computer system should be installed on your desk. You will need to have constant updates from the leading agencies that can supply quotes and news online 24 hours a day. You Internet provider must guarantee you a stable uninterrupted high-speed connection.
Important: in the short-term trading mode, a failure in the computer system will be equal to ruin. So study both options and use the option which is the best for you.