When a Singapore trader trades in the Forex market he usually makes a lot of short trades that last not longer than a single day. Sometimes we leave the trades for more than one day but very seldom for a week or more. Having tried few types of trading methods and strategies for a short period of time, we could say that day trading might be very risky for an inexperienced trader.
Without any doubt day trading has great potential for high profits. But in order to succeed in Forex trading by using this approach, a trader must choose a good trading system. Not every trading system may suit the day trading, there is hardly any system that can be used for all trading approaches. In order to find the method that would give the most effective results in your Forex trading, we recommend trying your strategy in a demo account first.
After you picked up the day trading strategy and tried it in a demo account, you can start apply it in a real account for a short time trading. Be prepared to the fact that day trading in Forex is not very easy trading approach. It is mostly recommended to the professional traders because it requires a lot of self control, experience and trading skills. For a beginner trader day trading might be difficult and too risky.
We have pointed out some main features of the Forex day trading:
1. Psychological factor. Day trading might be very intensive for a non- experienced traders who are not prepared for it. It can cause much pressure and tension. When trading within a day a trader opens and closes tens of trading position within a day or even within an hour. It doesn’t give him much time to think and analyze the market. When trading within a day a trader must know to take quick and correct decisions regarding his trading.
2. High chances for losses. Being under the pressure a trader may make wrong actions and lose a significant part of his capital. Once you are in a loss it will be very hard to return the lost funds.
3. Technical issue. The Forex platform you are trading with must have an instant execution of the orders without any delays. Due to the fact that the positions are kept for a shot period of time, every second of delay of the order execution may cause ten pips of loss.
Day trading is a very difficult method of Forex trading and demands loads of understanding and self power, but on the other hand it can be the most effective trading approach for a short period of time.