The Problems of Day Trading Forex

Trading is a tough art to master. But the pros and cons of day trading forex become apparent once a trader begins to face the everyday market risk and stress.

Seeing the Bad Aspects of Day Trading Forex First

Day trading forex has many advantages, one of them being the fact that the trader is capable of capturing many small price movements. Movements that would not otherwise had been captured, thereby resulting in substantially larger profitability. So that a movement in a currency pair, seemingly being just 50 pips on the daily chart, actually hides much more volatility. And it may actually hide as much as 150 pips or more through sideways trading actions. So day trading definitely is a big plus, at increasing volatility and very likely profitability as well. All forex strategies may have something good to offer, the rest is down to the individual trader who has undertaken the task of making money through trading. There is though the darker side, the side of reality where problems become too difficult to handle, and day trading becomes almost a daily battle to survive in the markets. While it sounds possible to succeed in day trading, the time commitment required is really a big price to pay. Most amateur day traders actually achieve poor trading results, even those that win, do in fact make less than minimum wage. Then there is a minority of around 15% of traders, who do pay the time commitment price but also make very good money. The bad aspects of day trading are such that only 15% of those traders can handle them in a productive way. Day trading like that 15% of traders who make it big, requires for example a great deal of social isolation, and not being able to accept any phone calls during trading hours. In fact any kind of distraction is bad.

How that 15% of Traders Succeed in Day Trading Forex

Day trading forex requires top notch, relaxed trading strategies, and knowing your market better than most other traders know their markets. The use of forex news requires a special approach, as does the use of any forex calculator for working out key numbers. That 15% of traders, does not use generic methods, does not use any ridiculous popular indicators, at least not in the obvious way. And it certainly knows how to handle those negative aspects of trading. Isolation, time commitment, and risk handling are few such bad aspects, because in general they are difficult to handle. And finally there is the bright side of things. Good day traders can make as much as $10,000 per week, and still be at the amateur level, but definitely very determined to succeed. Good traders never consider themselves professional and perfect, they always look out for that overlooked risk, and not becoming complacent. Even those $50K a month day traders consider themselves amateurs, and vulnerable to making mistakes. There is no guaranty of on-going profitability. And all those negative aspects may overwhelm the trader at any given time, ultimately sabotaging their trading.