Day trading Forex is extremely appealing to those that come into this market. Even those that have no previous trading experience are attracted by some commercials and testimonials they see everywhere about people making thousands of dollars by trading just a few hours a day.
Day trading is a demanding strategy in any market, but in Forex it’s particularly difficult.
Forex is open 24 hours a day, however to day trade it successfully you need volatility and opportunities and that’s something that doesn’t appear 24 hours a day. When you first try to day trade Forex, it happens that you stay in your computer for 3-4 hours and can’t find any decent opportunity. Then once you go out, the market finally moves and you’re no longer there.
Day trading can be extremely profitable, but in order to day trade the Forex market for a a living, you’ll need to be an experienced trader.
When you’re starting in Forex, the best thing to do is to trade larger time frames, like the 4 hours chart or the daily chart. The longer the time frame you use the easier it gets to trade, and this is something that applies to any trading market but that most beginners seem to forget. When you use a 5 minutes chart for example, you need to take decisions in seconds and you’re trading for small targets. So, you need to be extremely fast and trade in a bigger account than if you try to hold a trade for a couple of days.
In case you’re just starting in Forex, it pays to start trading just 1 or 2 currency pairs, and use longer time frames in your analysis. Then with the experience, you can try to reduce your time frames and day trading the Forex.