Day Trading On Forex: How To Start

by madhav joshi digital markting expert

Forex Trading is the exchanging of currencies from one currency to another currency.

Many people would like to invest in forex day trading as it is a process of trading in currencies in which positions are opened and closed at the end of the day or a within a single day. This is one of the reasons that forex day trading is considered the most effective way in the trading market.

Forex Trading itself is a broader topic as there are many things to cover, but time restricts us from doing so. Therefore, as per the title, we have covered only the essential information, such as benefits, processes and strategies of trading.

Let’s have a look at one-by-one

Benefits of Forex Day Trading

In addition to that, many benefits of forex day trading are as follows:-

Low Transactions Cost
High Liquidity
It is open 24 hours a day
Widespread across the globe
Suitable for novice investors
Secured as it is regulated by FCA (Financial Conduct Authority)

What are the Steps Involved in Forex Day Trading?

If you have decided you want to trade in forex day trading must follow the step-by-step instructions that are mentioned below:-

Step 1 Connect your device to the Internet.

For forex trading, you need a reliable internet connection without any interruptions. Furthermore, you must have a smartphone, tablet, desktop, laptop or any device to trade on the platform. If your internet connection is unstable while trading, you might have to bear losses as the market increases during that period.

Step 2 Choose Reliable Online Forex Broker

Create an account by choosing the forex broker and choose the broker wisely. Choose a broker that fulfils all your trading requirements and accepts you as a client. Always remember that the broker you have chosen for trading keeps your funds in a segregated account and must hold the proper regulatory license, such as the U.K.’s Financial Conduct Authority (FCA) or the U.S. Commodity Futures Trading Commission (CFTC).

Step 3: Deposit Funds into Your Forex Trading Account

Once you have chosen the broker, you can deposit funds into your forex trading account. However, many forex brokers accept different payment methods such as bank wire transfers, debit card payments or transfers from electronic providers such as Skrill or PayPal.

Step 4: Forex Trading Platform

You need some of the trading platforms for trading, such as MetaTrader 4 or MetaTrader 5, depending on the broker and which platform they have available. Though it s necessary to know which trading platform your broker uses or accepts. Oftenly forex brokers either use third-party integration platforms such as MetaTrader4 and 5 (MT4/5) or a proprietary trading platform.

Step 5: Get Ready For Forex Trading

Get ready for trading because now you have a funded forex account as well as money. To check out the features of the online broker, you can start forex trading with a demo account which helps you in forex trading. Demo accounts help you understand the trading process and strategies well and allow you to practice trading without taking risks.

Types of Forex Trading Strategies

After creating a forex trading account, it’s time to choose the best trading strategy which fulfils all your trading requirements. An array of trading strategies can be used for forex trading, which helps you to double your profits. Some of the well-known trading strategies used in trading are mentioned below:-

Scalping

Scalping trading strategy is the most active strategy for short-term market moves tto make your profits double. The positions take entry and exit into the market quickly to get a few pips of profit at a time.

Day Trading

Day Trading strategy is a process that involves positions of entry and exit within a single day, or the trading closes at the end of the day. Mostly, day traders or beginners don’t want to take risks at any cost of holding instruments overnight.

Trend Trading

Trend Trading is another strategy that is based on intrinsic value and searching options for established directional movements. In this type of trading strategy, the traders hold the position for the long term to get profits from the trends. Best forex card Niyo read niyo forex card review to know more

Conclusion

The Forex Market was established 500 years ago as it holds a strong position in the trading market. Moreover, it is a safe and secure trading platform as It is regulated and controlled by the FCA. This is the major reason many investors invest in forex day trading.