Importance of intraday trading for beginner traders

Very popular trading style considered by beginner traders is intraday trading. Even if the market is almost standing still, within the day, you can catch the vibrations in ten or twenty points …

In such a trade, you can make good money if open one position after another. It is this feature of the market and are beginners.

But usually the bulk of traders waiting for the imminent disappointment. When, after the opening of the transaction in the hope of getting cherished 10 pips price suddenly starts to move in the opposite direction and thereby nullifying all the efforts of a few days.
So do not make such mistakes and think that profit depends on the number of open transactions. After all, you can spend just one trading operation and get on with it came more than a scalper will receive per month of work.

At the opening of each transaction, you lose a percentage of profits, because the broker charges you a fee for their services in the form of the spread. Spread rates vary depending on the broker and the currency you trade.

On average, its value is equal to 2-5 points. When long-term trading, this value is not very important, but when short-term trading spreads may eat all your profits.

Therefore, most traders who switched to a new level of the skill, do not advise anyone to work within days. Long-term trade is safer in terms of predicting the development of the situation in the Forex market.

And profit from the transaction may be significantly greater than your intraday trading.

But many traders may argue that most of the time the market is in the flat, and trading with long-term trading will not work.

Out there - need to find a currency pair, in which there is a trend, and trade with the help of this tool. For example, the currency pair euro-dollar may be very rare in the flat, as most of the time there is a trend movement. You can easily verify this, you just have to open a chart and all will become clear.

If you do decide to trade intra-day, the Trade in small lots, and be sure to place the stop-loss orders, because the forecasts for the short period of time is very difficult …

I really haven’t a slightest idea of how to trade on long-term day or week-through trading. Broker applies spreads, overnight swaps, slippages, gaps to long-term positions resulting in significant drop of potential profit. Just find a broker with low or fixed spreads like Hotforex and work intraday. Much more say and easy to take it psychologically.