What do day traders look like?

Day traders are defined as traders who place at least one or two trades on average daily. These trades are also to be closed before the end of the trading day to avoid attracting overnight charges like swap and rollover.

Brokerage fees for day traders where they apply can be substantially lower than fees for other types of traders.

Tips For Surviving and Thriving as a Day Trader:

Active traders just must agree with me that day trading is not easy, particularly when your sustenance is based on what you make from trading currencies online.

The four common strategies adopted as day traders who seek to make and multiply profits are as follows:

1. Trend following: This strategy is used by most trading firms and individuals. It assumes that currencies and that have been rising steadily will continue to rise.

2. Playing News: This strategy is to buy or sell a currency of a country which has just announced good news for the economy. You can get news information from forexfactory, forexnews and fxstreet.

3. Range trading: With this strategy, a trader seeks to buy when the market ranges into the oversold area at a support level and sells in the range again when the market has ranged into an overbought area at a Resistance Level. Hedges also use this when they are not sure of what the market is up to. Sometimes, this range movement may make something around 50 – 70 pips range and can be used to build a great portfolio.

4. Scalping: It is referred as a very quick way trade. A scalper may simply operate on either the 1 minute or 5 minute Time-frame taking only about 5 pips to 10 pips per trade and enter into a many as 50 trades per trading day.The use of multiple and large lot sizes can make this strategy very rewarding as well as risky.