Day trading Forex involves buying and selling currency pairs in order to generate short but frequent profits. In all cases, with the exception of a few, you will never hold an open position for more than a day. Thus, you need to be well versed in technical analysis to succeed in this segment of the forex market.
In this in-depth guide, we'll discuss everything there is to know about day trading Forex, including what strategies and systems you can use to get started today!
How to Trade Forex - Forex Day Trading
If you want to start your day trading forex journey right now, follow the quick steps below.
• Step 1: Choose your strategy. In order to trade forex, you will need to deploy a strategy that suits your skill set. A good starting point is to focus on the major currency pairs that offer the tightest spreads and the lowest volatility levels.
• Step 2: Register with eToro. To do day trading, you need a top quality forex broker. eToro is a great option as the regulated platform offers dozens of pairs at industry-leading rates.
• Step 3. Practice with a demo account. If you are a beginner, the best place to start is with a demo account. eToro offers $ 100,000 in paper trading funds and the demo platform reflects current forex market conditions.
• Step 4. Trade real currency pairs. Once you have mastered day forex trading, you can start buying and selling currencies in the live markets.
We'll discuss the best forex day trading strategies below in this guide - all of them are perfect for beginners. Day trading in the forex industry refers to a specific short-term strategy focused on small but frequent profits. The general rule of thumb is that when you open a position, you close it within a few hours. In some cases, your daily trading order may only remain open for a few minutes.
This is in stark contrast to other forex strategies - swing traders have the ability to hold a position for several weeks. With this in mind, the amount of profit available from day trading forex will be somewhat modest.
