The Day Trading Forex Review – How to Get Started

Day trading forex live is all about doing the analysis beforehand, and then trading fast, almost mechanically. It is the only case where discipline does help.

Day Trading Forex Live for More Profit

Traders turn to day trading forex live only because they can afford the time, and because slow trading seems less profitable. And in reality, slow trading may be less profitable since the market offers less price margin to capture. Day trading forex live is about understanding volatility, and trading the minor ups and downs of market price. As much as 70% of the time, the average market is either locked in some kind of range, or it is trading in totally flat mode. In both of these cases day traders can act and trade profitably. Day trading forex live review reports focus on used strategies and concepts. And these prove that day trading is actually very difficult, but not impossible. As only a handful of traders really prepare for the daily trading session. Most of the day traders who lose money do so because they attempt to trade the daily news, which is impossible. While the few that win time after time, are selective on choosing the trading day, and prepare hard. Once in the trading session, wise day traders use good indicators to gauge false trends, as well as the gathering of momentum. Momentum of good trends tends to build up quietly, and amateur traders are oblivious to it. And when the momentum is enough, the market suddenly makes its move. Momentum build up refers to traders who think alike, and who act collectively. Their thoughts and decisions are based on indicators and charts. And it is very difficult to detect such collective thinking. Market price momentum is only the result, and by the time it has happened it’s even more difficult to determine subsequent market direction. You cannot learn how to trade forex based on price momentum itself, as it is the result, not the cause of traders’ actions. Momentum in general, as defined in terms of market price, is a lagging, almost useless indicator.

Day Trading Forex Live and Physical Exchanges

Physical exchanges are still relevant in the age of electronic trading. Because the trading times and the noise on the floor reveals major turning points. All major stock and commodity exchanges around the world are relevant in all markets, even in forex trading. But especially in stock day trading, and stocks strongly correlated to the major indices. You can actually do fast forex day trading, on major currencies, and use stock and index data in the process. Currencies tend to correlate once in a while to some stock index, or specific stocks. And when a correlation is in place the data is very useful. For example EURUSD tends to correlate with the major US stock indices, for long periods at a time. And you can use premium information. Such as level II quotes, or floor audio data. To determine if anything interesting is about to happen in the daily session. Trading online made easy through level II stock quotes is difficult and requires knowing the inner workings. But it is possible. As is floor audio information. As the stock exchange in question does set the tone for the entire market, part of which is the currency pair you trade. And this will work while the correlation lasts.

Getting Started in Day Trading

Traders should approach day trading in forex with caution, and become specialists in one or two pairs. They should avoid using the daily news as a directional indicator, and focus on volatility and daily range instead. Another useful tool are the LSS pivot numbers, which they do work more often than not. And LSS does indicate market momentum potential as well. Because market price very often slows down or stops right at some LSS number. Day trading works best through a CFD trading account, as CFD liquidity pools are superior to that of other instruments. Which makes CFDs ideal for retail size forex day trading.