Day Trading
Day Trading, currency or stock buying and selling, also known as forex. A gain on forex is called “profit on exchange” whereas a loss on forex is called “loss on exchange”. Forex Day trading involves opening and closing positions on the foreign exchange within 24 hours. This principally means that a day trader will buy and sell foreign currency within the day trade. Forex is affected by things such as level of production in the economy, geopolitical circumstances, inflationary pressures such as crude oil prices, and Acts of God such as earthquakes. For you to be able to trade on currencies, you need to have done dummy trading for not less than six months as this is a high risk business.
To become a successful trader, you need to learn continuously. At times you will burn your fingers and lose your deposit. But never give up. This is the reason why the first trading account should be a dummy one, then a mini forex account of around 500 dollars. If the mini account is profitable over time, then you are ready for the big league. Expert traders incorporate an automated trading system known as online forex broker that helps the traders to open and close positions from the comfort of their home. The online trading of currencies has several benefits over pit’ trading. Some of these benefits are highlighted below.
24 Hour Real Time Market Analysis Data
The most obvious benefit of being an online trader is the 24 hour trading. No human being can be able to monitor the foreign currency exchange market data 24 hours a day. If you have access to the exchange data through an automated online broker, you will not only be able to trade in any time zone, but you will also have the live market analysis data on your laptop or tablet. Online trading is especially important for traveling business men.
No Commissions
Online traders are able to avoid the punitive commissions charged by the physical brokers in the exchanges. Remember that the forex day trading market is highly liquid, competitive and risky. These commissions may be the difference between a profit and a break even, or even loss. !
Split Second Order Execution
The moment you fill up an order and hits the execute button, the order is immediately executed. Now, supposing you are a large trader or broker who executes hundreds of trades. The smart way to go about this will be to do it online since you will accomplish more orders, hence better profitability. You are also less likely to make mistakes as most online brokers such as easy-forex will warn you the moment you make a mistake on an order.
Opportunity Cost
The time spent traveling, shouting yourself hoarse, as well as the additional money you spend as commissions can get a better utility. Smart businessmen will always work smart; maximize the utilization of their resources and time to reap maximum profits. Are you a mediocre trader or you the new, tech savvy investor?
