There are many types of Forex Traders, each with his own style. On a day-to-day basis, Forex has thousands of individuals that are trading multiple pairs. The trading volume on any given day can range from little to extremely heavy, depending on the time of day, the Market conditions, and other factors that can be associated. Because of the various opportunities that exist in this busy market, traders of all calibers have emerged. The different types of traders are day traders, swing traders, long term holders, and scalpers. We will be discussing day traders.
Day trader are people who simply buy and sell within the same day. The reason they do that is to buy and sell to turn a profit with a short-term movement in the market price. Many day traders understand that if you hang on to a good trade too long, the up tick will have passed and the stock could plummet. What I have seen from a number of beginners (and some veterans also) is that because of various reasons, people wait too long and as a result they end up not making any money at all.
My advice to all the newbies; because of your newness to the Market, I would suggest that you start by trading a demo account. With that scenario, you are not using real money, yet you are choosing your pairs, buying and selling as if it were real. You will accrue pretend gains and pretend losses. If you are, in fact, interested in trading real money, you should find a company that allows you the ability to open an account with a small amount. Also it would be BEST for you to use a training company that gives you the opportunity to "earn while you learn."
I have always taught my students that before they start trading, it is a very wise decision for you to set up a few rules for yourself. The most important rule, in my opinion, is to limit your losses. Forex isn't just about gaining, but even more, it's about avoiding losses. I believe that you should put a dollar amount on what you will allow yourself to lose in a single day, but you MUST stick to it.
Just don't be like many day traders, who make the mistake of holding on to pairs way too long, rather than closing the trade and just taking a small gain or a slight loss. When they notice the pairs initially starting to lose money, they decide to hold onto it thinking the market will change in their favor and they can make back whatever they've lost. Instead of the anticipated gain, the result is even more money loss than if they would have just closed the pair when it hit its loss limit.
If you will be successful as a day trader, you need to know your limits, trust your strategy, and learn with an education company that will provide an earn-while-you-learn opportunity. Forex can be a great success for you, but ONLY if you make the decision to work at it. Take a word of advice from one who has experienced MANY losses, finding a coach or someone who is willing to walk you through the beginning portions of your Forex career is invaluable. Find a coach and learn Forex today.
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We want to show you how to get more out of your investments. NBCX is giving away a FREE book to help you learn the Market and how to become more financially independent. For more information or if you would like to join our FREE Learning Center and begin taking classes for FREE, be sure to visit NBCX online TODAY.
As always, happy trading. Mr. Brewer, Founder, NBC Exchange. Providing quality reviews, articles and writings on forex online.
