Day trading on Forex is one or few trades conducting within one trading day. As a rule, time intervals between opening or closing of trades may reach from several minutes up to several hours.
A special attention to intraday trading is paid by traders running dynamic activity in the currency market. Mostly traders operate daily on Forex.
Despite some difficulties of day-trading, this type of trading is very popular among the newcomers as well as among experienced traders. The day trading grants opportunity to raise profit in a maximally short term with a small amount of funds.
For achieving favorable results at intraday trading it is essential to make the right forecast relatively the price movement on Forex, as many external factors contribute to high volatility in the currency market. So to make your day trading beneficial you have to track the market situation, collate facts and make conclusions about the price behavior of currencies, it is also important to have a good reaction to be able to find entry and exit points quickly at opening or closing of trades. Combining deep knowledge of technical analysis with patience and observance trader has all chances to earn well with a relatively low risk.
There are some strategies of day trading. The most widespread among them is scalping - system offering a fast opening or closing of several day positions. Trader closes trades at making just a few profit pips and earns due to a big number of successfully completed trades for a short time frame.
One more popular strategy is news trading. Traders, who choose news trading, monitor the market events permanently, analyze the currencies behavior in different cases. Usually news trading requires an insight learning of market development and a proper trade experience accumulation.
There is one more pullback trading system when positions are opened against trend at a low-paced market dynamics.
Day trading can be a source of good income with a correctly built strategy combining a set of most efficient trading instruments and readiness to devote most of your free time to trading.