What is Day Trading?
Day trading
Forex Trading Glossary
Quick Answer: Day trading involves opening and closing all positions within the same trading day to avoid overnight risk. Day traders use small timeframes (1-15 min) and make multiple trades daily.
What is Day Trading?
Day trading involves opening and closing all positions within the same trading day to avoid overnight risk. Traders rely on intraday charts, liquidity, and fast decision-making.
Characteristics of Day Trading
- Short timeframes: Execution on 1-minute to 15-minute charts.
- High trade frequency: Multiple trades per session.
- Strict risk control: Tight stops to limit drawdowns.
- Market focus: Typically on major currency pairs with tight spreads.
Mind the Schedule
Day trading requires consistent blocks of time and emotional stamina. Plan breaks to avoid decision fatigue.
Day Trading Tips
- Session selection: Trade during London or New York overlaps for optimal liquidity.
- News awareness: Know when high-impact releases can create whipsaws.
- Process before outcome: Grade each trade on adherence to the plan rather than profit alone.
- Technology: Use reliable data feeds and execution tools for speed.
Related Terms
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