Day trader can be defined as any trader who makes several trades in a day, which includes selling, buying, entering and closing out a trade in the same day. In simple words we can say that a day trader makes trading in the market wherein the trader sells, buys scripts in a day. Forex day trading is the same thing; the only change comes where in Forex currencies replaces the stock. The commodity changes when it comes to the Forex which is currency.
Forex day trading differs with trading in stocks in the sense that, in Forex day trading we cannot buy currencies for a longer period of time like our children or grandchildren get benefit from them because it will not grow as the exchange rates fluctuate too quickly, whereas in stock trading, the shares are purchased for a longer period of time where our children or grand children get the benefit from them. This type of investment requires good amount of time as well as money. Time is required to educate the investor who is making investment in the Forex market.
We can compare Forex day trading with the trading in the futures market, the only difference between the two markets is, in Forex, the liquidity is higher than the futures market and trading costs are lower. The people who involved in the day trading are professionals who are not only intelligent and well educated but they also understand the market trends and charts which help them in making forecasting possible.
In short, we can say that Forex day trading is risky business which can be profitable and can end up putting you in losses, it can be exciting or frustrating but one thing is for sure about Forex market that it can never, never be boring.
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