So you have learnt about Forex Trading and you are filled with hope and dreams towards financial independence and fulfilling your interests in your life.
And now you have learnt a new term called Day Trading with Forex Currency.
When it comes to learning Forex, some beginning Forex Investors prefer learning Forex through day trading Forex Currency. How is Day Trading Forex Currency able to make a person who has been reading e-books or e-articles on Forex to learn faster?
Some learners believe that by being in-real time live market situations could further one¡¯s knowledge in his or her trading career. Some people might agree with this day trading Forex Currency methodology especially those who have spent thousands of dollars on books, e-books, videos on Forex but in the end, they got nothing.
But once they attempted to learn Forex in a real time environment, seeing live charts, in depth explanations of a full time forex day trader personal live trade entries, they followed along and made it...
After doing several researches on day trading forex currency, we found that there are two main ways to trade: Continuation or Reversal. Let¡¯s look at what they mean. Continuation consists of breakouts and trends, while Reversal concentrates on trading ranges at the edges, betting against a breakout.
The hours you trade should indicate which style of trading is best for you. For example if you trade during the busiest hours, then you may want to look for breakouts and try to ride trends. If you are working when everyone else are sleeping, they you may want to try trading ranges at the edges, betting against a breakout.
Whichever method you adopt, how you succeed in day trading Forex currency, it is a matter of risk management and analysis of profits, which means you, set your own stop and profit targets at the right positions.
Some people in USA, for example, like to trade the after-hours EUR/USD market. They think this is practical as they can watch the market during the trading period of Asia. They will try trading ranges, particularly double-tops and double-bottoms at prior support and resistance levels.
They may possibly get 5 good trades per week and even win 3 of them, with a win of about 1.5 times the average loss. At the end of the day, that is a good methodology because they win little by little and ultimately reaping big profits.
Nevertheless, the most important part of any Day Trading Forex Currency System is to have a methodology, stick to it, get good at it, and make it work for you. If you aren't disciplined enough to stick to your trading ideals, then you would be better off being a monkey pushing buttons when the lights all turn green, as your losses will probably be smaller.