Online Forex Trading

How to be successful in Day Trading

Forex trading is a huge market. There is scope for everyone, right from the richest of rich to the mediocre investor. Even some years back, it was dominated only by a handful of rich people who had the money to play in this market. It was the domain of large corporations, financial institutions and world banks. But with the access to the internet, it has become so easy to trade.

Day Trading

This forex market is a 1.2 trillion dollar market, business is rolled everyday. With the advent of the internet, even a simple investor can start trading with 300$ bare minimum amount. The regular accounts have to be kick started with 3000$. Leveraging funds becomes easier. For every 1000$ of investment, you can trade for 10,000$.

For every 100 dollars, you can control 1000 dollars. That makes it 1/10th of a lot. 1$ is the worth of your pip.

Understanding the forex market economics is very easy. Simple logic is applied that when the market is low, you need to buy and when it is high, you have to sell. You also need to keep track of the market prices, charts and other forecasts of veteran traders. They know exactly the tide of the market. When you are in this line of business, it would become easier for you to understand the ups and downs, ins and outs of the market.

The most common currencies which are traded in this market are USA/Japanese (USA/Yen), EURO/YEN, USA/Canadian etc.

As compared to the stocks and futures market, brokers do not charge any fees or commission for the services they provide. They make money on the spreads. The spread is entirely determined on the trades effected by the traders or investors. 3 to 5 pips are the major pairs. Once you have kick started this business, you would slowly understand the terminologies associated with it.

Most of the brokers offer demo accounts for new investors. You could get yourself acquainted with these demo accounts and deal with virtual money, you need to get hands on experience before you actual start real trading. Educating and practicing on these demo accounts would be beneficial and you would also be confident while you are doing real time trading. You also need to understand the charts and the curves so that you know the trend of the market.

There are so many factors like economic, social and political on which the forex market depends. World events also have an impact on the Forex market.

Different techniques are used to be successful in this market. Every technique or strategy has their own advantages and disadvantages. It is for you to decide which one you are comfortable with. Surfing charts, scalping trades and sailing are some strategic moves.
Forex market is an unpredictable market, there could be days when you earn, days when you would lose out. But the crux of the matter is that it is really interesting and fun.