Forex for beginners-how to make the most money day trading
If you know how to day trade properly, you can make a lot more money in forex than most other traders. The traditional swing trading and long term tradering is OK for long term investment, but if you want to make a steady income in forex trading, you need to trade more frequently, and you do this by day trading.
Because of the extreme power and liquidity of currency markets, the forex market is the best for day trading. There is one word of caution here though. Day trading is difficult and requires a lot of experience to do it properly. You will have to study the market inside and out!
The first thing you need to do is learn as much as possible about the currency market as you can. This is far too general for the novice trader to dive straight into day trading and immediately assume that they will be able to make some easy money. This kind of reckless usually causes a complete loss of money.
You need to learn the personality of each currency pair and each session. You would do well to trade exclusively with one currency-not bouncing around. Believe it or not, the currencies of countries each have their own idiosyncrasies, and you need to know and learn how to exploit them.
You need to understand support and resistance, price action, and candles. When it comes to day trading, indicators will not help you much. They lag far behind because most of them use the average price of the past. When you are trading using the short-term charts, you can't wait for the indicator. You have to make quick decisions and for sure, and they should be right.
Finally, you need to find a system and stick to it. You can not, and I repeat, cannot change the system again and again. Like a baseball pitcher has with the best field he spent years mastering, you must have your own system you have mastered. Then you can add to your strategy, but not at the beginning.
All this being said, day trading is very, very profitable, fun and exciting. If you are a person that is constantly being able to stay focused and refused to surrender, day trading can make you a lot of money!
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