There are many ways to trade the forex market and forex day trading is one of them. Although it is gaining popularity, forex day trading or forex scalping as it is now more commonly called, is one of the most risky way to trade the currency market. It is a high paced game and requires a different skill set as compared to other forms of forex investments.
If you are the type who likes the excitement and high adrenalin game of trading, forex day trading could be the one for you. It may even be more profitable than long term forex trading. This is because you can perform more trades per day and assuming you’re able to consistently make some profits from the greater part of the trades, your profitability can actually be higher than the number of long term traders.
Another advantage of day trading is you don’t have to be afraid of holding the trades overnight. You will close all your trades at the end of every day and if anything happens that will have an impact on the currency of certain country over the weekends, you can still sleep in peace. The long term forex investor will be pouring cold sweat while waiting for the forex market to open, on the other hand.
High risk forex trading free account
Basically, they lure an investor with various sweet promises to open an account and deposit his money. This money is NOT really traded at the forex market; these fake traders only pretend to make analysis and trades based on current market data. The trades are seldom result in winning trades. However, they’re really smart at creating excuses for the loss. After they have squeezed the investor dry, they’ll take cover behind the risk disclosure and proceed to the next target.
Managed forex trading is still a good way to invest your money with various risks behind it. Just make certain that you put your money in the proper hands.
Having said that, I must emphasize that forex day trading isn’t a bed of roses. It is a fact that more than 80 percent of forex day traders end up losing money. One of the reason is a result of the high risk involved. Another is these traders can be found in the market to make quick buck and didn’t make an effort to perform the necessary forex training to become a successful day trader.