In most cases, beginning traders, even if there is some sufficient initial investment funds, being taught by the bitter experience set forth in numerous books of professionals of this market, go to Forex with relatively small amounts …
This, in turn, leads them to that kind of this market, which was called day trading, that is, trading within one trading day of the international electronic currency exchange.
Thus, most often there is a paradoxical situation when a novice trader immediately has to work with a relatively more complex market than the market for ordinary “multi-day” deals.
The latter does not imply such a great permanent tension of all forces, as intraday trade. After all, in fact, every trade deal in the practice of intraday trading should be guaranteed to be closed in a period of several minutes to several hours, and in any case – until the end of the trading day.
The cases of transfer of the transaction on the next day are single. Numerous definitions of this type of trade are that a day trader (or day trader) is a bidder who has a small capital within the trading session and closes all his positions before closing.
What is Day Trading?
The essence of his work – the ability to quickly and correctly analyze information and also respond quickly to changes in the situation on the trading floor. Accordingly, the day trader almost completely does not deal with a serious macroeconomic analysis and the forecast that determines the big waves of financial changes, and is studying the discipline of fundamental analysis of markets.
He deals almost exclusively with the current market changes, connected in the greater degree with the psychology of trade and the general laws of the foreign exchange market, which are studied in technical analysis. When working almost exclusively with technical analysis, a trader simply has to develop his own audited signals for himself and develop a profitable trading strategy.
For the vast majority of transactions that a day trader concludes, even a special term – “scalping” is invented. It comes from the specific experience of trading on very short trades – literally in a few minutes, when the trader “cuts off” the most delicious “top” with an unexpected spurt of the price in the right direction.
Those who like this tactic make a lot of short trades per day, each of which brings a very small income, but it has a relatively minimal risk …