forex traders

Any trader will agree with me on this: Day trading Forex is the most difficult task a trader has to perform. For many Forex newbies day trading seem extremely appealing.

Beginners normally try to use too much leverage in order to capture small profit trades but the truth is that to make money consistently through day trading Forex is not an easy task. We must remember that the Forex market is open 24 hours a day and no matter how hard a trader works, he simply cannot watch the market all the time, it is humanly impossible to catch all the good opportunities presented in the Forex market daily.

The Forex market lacks volatility during most of the day, that is a fact. You can always try to day trade, of course. You can stay in front of your computer for hours and hours waiting for a good opportunity to show up but most of the time, it simply won’t. The worst about it is not that you won’t profit, it is simply the fact that you will make much more mistakes. It is a big mistake to stay too much time waiting for a trade. Normally when this happens traders tend to make some expensive mistakes.

A common thing that happens with day traders is that the spreads that seems to be so small on the most common currency pairs, are extremely high. Yes, 3 pips, doesn’t seem to be a big spread but this small spread means you’ll lose 3 pips every time you buy and 3 pips every time you sell. Therefore you’ll be losing 6 pips every time you open and close a trade.

If in a day you make 5 trades, your broker will get 30 pips. If you want to make money day trading you will have to make a lot more than 30 pips a day in order to pay the higher fees.

Please keep in mind: day trading Forex is a hard and tiring job. Dedicating time to any financial market is a tough task but Forex it’s far worse. Day traders find it very difficult to make a consistent profit due to the 24 hours open market and the lack of volatility during most of the day.

Day trading Forex is just plain hard! There is no way around it. It should only be handled by highly experienced traders and even those have problems in trying to make money. So, if you’re new on Forex, you should make sure to avoid day trading and trade only on more extended time frames.

Elliott Pearce is the creator of Supra Forex, the only Forex software that gives you high and consistent profits. http://www.SupraForex.com is an online software that combines 2 different strategies and it can be used with 20 currency pairs and spot gold. Check out Supra Forex Now.

From One Forex Trader to all other Forex Traders