What is Day Trading & When to Day Trade for Better Profits?

Finding lucrative openings in smaller price movements, starting and executing trades within the same day and indulging in multiple trades within one day - these are some of the things a day trader does regularly. While trading in shorter timeframes sounds like a bad idea, the reality says otherwise. It is an immensely lucrative approach and can reward you tremendously when done right. Day trading involves intense trades, done at frequent intervals. This intensity of this Forex trading strategy might not work in the favor of every trader, but with a little assistance, anyone can get started!

Here are 5 Tips to Become an Amazing Day Trader: 

 

Day Trading Tips for Forex Traders in South Africa

1) Research is Everything: Without knowing what to do, progress will never come. Working in the field of trading means you have to stay updated every step of the way. Charts change every day, prices see hikes and drops, and the market is constantly fluctuating. Forex being the chaotic field will require consistent research for a trader to stay abreast of what goes on around him.
 

2) Invest Slowly, but Steadily: Slow and steady wins the race, isn't that how it goes? It does so in Forex! Novices have the misconception that investing more yields more. The market, however, isn't that forgiving. Foreign exchange grounds are incredibly volatile; entering a bad trade with high amounts and added leverage from Forex brokers, spells the recipe for disaster!
 

3) Have Risk Capital Ready: Don't make the mistake of day trading, without dedicating risk capital. When holding a position of $10,000, you should be ready to sacrifice 2-3% of it. Having risk investment not only fortifies you mentally but also ensures losses don't get the better of you.
 

4) Pick Proper Timeframes: When you enter a trade, and when you exit will decide whether you emerge successfully or not. Currencies aren't always profitable, even major pairs like USD-EUR see a significant drop from time-to-time. Plan your entries before you make them.
 

5) Trade Your Plan: Getting carried away is in every human's nature. There will be one too many occasions where your trading plan seems lacking, or when the grass is greener on the other side. Stick to your plan, even if others' seems better! Markets are severely volatile in Forex, and trades can turn awry in no time.
 

Gain mastery over day trading, and dominate the grounds of currency exchange. Call WesternFX today, and hire from our arsenal of FX professionals. From Forex trading strategies to brokerage, we will equip you with the best of all! Join with us and conquer Forex trading in South Africa today.