What is Forex trading?
Forex is a short form of Foreign exchange and it means trading one currency for another. Now, unlike the Stock Market where it’s traded on a centralized exchange, the Forex market is traded over the counter. And it’s connected electronically between banks and brokers.
What are the advantages of Forex Trading?
Now let’s look at some of the huge advantage Forex Trading offers that you can’t get elsewhere…High liquidity – According to the Bank of International Settlements (BIS), Forex is the largest market in the world with over $5,000,000,000,000 traded each day. That’s Trillion with a “T” This means you can enter and exit positions easily with minimal slippage.
Day Trading Strategies
Head over to websites like Reddit and you’ll see many trading dummies will often fall at the strategy hurdle, taking the first momentum examples they see and losing money left, right and center. Savvy traders will employ day trading strategies in forex, grain futures and anything else they’re trading in, to give them an edge over the market. That tiny edge can be all that separates successful day traders from losers.
With so many broker forex trading strategies out there, its very hard to decide which one works best for you. So if you are looking to trade in your own time frame and are not looking for specific timed signals then look no further and use our Best Forex Indicator Today.
There are a number of day trading techniques and strategies out there, but all will rely on accurate data, carefully laid out in charts and spreadsheets. Options include:
- Swing trading
- Scalping
- Trading zones
- Trading on volume
- Arbitrage trading
- A simple day trading exit strategy
- Utilising news
Low barrier to entry – Most Forex broker allows you to open an account with as little as $100.
- Speed of execution – Due to the high number of trades you might make in a day, speed of execution is important – as is getting the price you need, when you need it.
- Costs – The lower the fees and commission rates, the more viable day trading is. Active traders will be trading often – minimising these trading costs it vital.
- Support – Whatever your day trading strategy, you’ll probably need assistance at some point, so look for online brokers with quick response times and strong customer support.
- Spreads, Leverage & Margin – As a day trader you want competitive spreads – you might also want certain leverage levels and low margins.
Better risk management – You can trade micro lots which allows you to better manage your risk. And unlike Stocks, the Forex Market seldom has gaps which mean you will rarely lose more than intended.
Trade anytime you want – The Forex market is open 24/5. This means you can place your trades anytime from Sunday around 5 pm EST to Friday around 4 pm EST (depending on daylight savings).
Low transaction cost – Unlike Stocks, most brokers don’t charge you a transaction cost. You only pay for the spread.
- EUR/USD
- GBP/USD
- AUD/USD
- NZD/USD
- USD/CAD
- USD/JPY
Read more on The Benefits of Using Live Forex Signals
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