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Forex Day Trader Advice

By: Tyler Ziggler
Submitted: 2008-05-12 22:46:27
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I wanted to share a little with you about my forex day trader advice that may help you in trading. Learning this business can be a somewhat frightening task, due to the massive volume of trades daily. This isn't really that complex of a business to learn.

  • Trade at peak hours: This is important. Peak hours start right after the morning news and this is the point of the day when the trading volume is the highest. You're probably wondering why you should do it when everyone else is doing. Well, the reason is simple, the volume is so high, no bank or big firm can make massive trades that would end up altering the direction of a currency. Buying and selling of currency will affect the direction of the currency, but when the volume is so high, it is next to impossible for a big bank to make a massive trade that could move it in a specific direction. At off peak hours, this is the case. Big banks will come in with massive trades that will cause a currency to move up and down. As a little guy, you're not going to have the money a bank has to make these trades, so you're limited. Just avoid this time and just stick to peak hours.
  • Have healthy margins: It's surprising how much people just don't work on having healthy profit margins. People make small trades and most of their profit goes to the broker. This is a poor tactic and it will deceive you into thinking you're worse at trading than you really are. A broker gets their pay from the difference between bid and ask prices. These prices are practically a flat rate no matter how much you trade at, so make sure you're getting healthy margins.
  • Don't hesitate on cutting your losses: Losses are inevitable, but the difference between the profitable trader and the losing trader is that the profitable trade limits the damage of a loss. This is why it is essential to cut your losses and move onto a better trade.

These were my forex day trader advice and I hope it helps you on your way.

I'm currently giving a 7 day free forex training course. Newbies and experienced are all welcome. If you're interested in participating, check out the Casual Forex Trader.

Article source: Expert Articles

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