Day trading might get your interest because it is pretty common these days. But did you know that day trading shouldn’t be treated lightly? There are strategies and trading platforms such as the MetaTrader 4 that you should think about and the time of the day that you must allocate is not a joke.
Understanding Day Trading
Day trading is a trading style wherein a trader gets to open his trades at a specific time and also closes it all at the same time. In this style of trading, you get to have small profits throughout the day. But if you remain consistent with your trader, your wealth will eventually build up. Day trading is like accumulating small droplets every day whilst, creating an ocean out of it. If you are not very familiar with long-term Forex trading, this trading style can be perfect for you. Although it is known to make small, frequent trades, the time it takes to succeed is long, together with the agility, intense discipline, and risk considerations as well.
Why do day trading?
Either you make or break – how your day trading runs depends on your strategy and your attitude towards your trades. Although there are notable risks involved in day trading, there are still a lot of traders that get lured with it.
It is already known that long-term trading involves a longer horizon. And whether you like it or not, success in trading depends on how experienced a trader is. You will surely make mistakes along the way but it should not define you as a trader. Instead, you should learn from it.
Day trading makes it utterly simple for beginners like you. Throughout the day, you will get to know the right from the wrong and cut the chase in a snap.
Brokers from different parts of the world set high leverage for intraday traders. This is all possible because you will be losing your position on the same day. But day traders in the US follow a different rule. They are required to maintain at least a $25,000 balance before they can day trade. With Forex trading, such restrictions aren’t available. You can start trading with as low as $50 as your capital.
Income Not Returns
In day trading, you either make profit or losses throughout the day. Therefore, it becomes your income and not returns if you are good at it. Just like handling a business, you can create a massive flow of money. But in case you are not good at it or not using your strategies accordingly, you will also go down and get bankrupt just like in a business.
Since you plan to succeed in day trading, you must know and understand the importance of using the right technical tools. In MetaTrader 4, there are built-in indicators for day traders while there are also some that you can download for free. Some of the most used indicators in day trading are Pipbreaker and Velocity Finder.