Day Trading Strategy

Day trading is an essential activity in the professional trading field. Most of the professional trader in the trading firm does the day trading and of course, the individual traders who make their living out of trading, day trading is a regular job for them. Day trading largely operated by institutional traders who trade in big volume daily.

Definition

When a trader opens & closes trade within a day or within the stock exchange opening & closing time, then its called day trading. Means all of your opened trade get closed within the day, does not stay open until the next day; Daily to daily cash trade.

Top benefits:

1. No Swap charges

With day trading, you do not have to pay any overnight swap charges. You can sleep peacefully without worrying about the market gap which occurs usually at the start of the next day, especially on Monday or after any trading holidays.

2. Less risky

Since the technological boom in 1997, day trading is widely popular among most of the trading firms & majority professional traders. The reason behind this, it can be operated within the office hours. Less risky than position trading. For active markets, day trading is a good option.

As we all know the forex market is a highly volatile market. Hence day trading is the best possible choice for pro traders, forex fund managers; institutional investors.

3. No Gap

As we have mentioned before, if a trader hold their position until next trading days or week, then there can be chance for a gap, which can be risky if the gap happens against the trading position.

Careful trading

New inexperienced traders get highly excited about day trading as they are biased to get rich in one single day. But in reality, day trading requires expertise & experience to get success in the long run. About day trading market timing is highly important then you will be able to gauge the market possible supports & resistance level along with market turning times.