Day trading forex currency is becoming a more and more popular way to make money. Forex is the foreign exchange market where trillions of dollars worth of currencies are exchanged worldwide every day. Money is made by exchanging one currency for another when you think that the values will change, and then exchanging them back at a profit if this was successful. Day trading systems involve opening and closing trades within the same day, although many day traders work on a much shorter timescale of just a few minutes.
As a trader, you must be familiar with market consolidations when the market is directionless and is moving sideways trying to catch its breadth. Now the Robin Hood Mechanical Forex Trading System has been specifically designed to trade the EUR/GBP currency pair during the consolidation phase. It uses the 1 minute bar chart and depends on the Stochastic Indicator to generate trading signals.
When you buy one of those enticing day trading systems offering you 100% profits or 70% success rates ask for the real time track record and you won’t get one.
Learning to spot trends in Forex is a great way to learn how to make a profit. It will take a little while to notice any trends through all the jumbled numbers you’ll see, but once you learn to spot them you can then start making predictions, and hopefully making the right trades. If you see a trend, use it.
Secondly, it is important to trade with currency pairs you know well. You will find hundreds of currencies to trade but you should be very familiar with the currencies and countries you choose to trade. There is no place for emotions in forex day trading. You need to think with your mind and not with your heart. An emotional decision can result in a costly loss. This is the main reason that many successful forex traders use software to help choose their trades. List of validate software is available here.
In most cases, there is no definite time that can be called as the best time of the day to trade. However, sometimes the market seems to move slower and more predictable and sometimes the market moves unpredictably faster than the usual especially during press releases. These different movements of the market do not necessarily means that it is more profitable to trade during a certain period.
You can never win with forex day trading. Don’t be misled into believing that you can because the truth is, you simply can not. If you really want to earn, try your hand at forex swing trading instead.