youíve been trading for a long time, you no doubt have felt that a
monstrous, invisible hand sometimes reaches into your trading account and
takes out money. It doesnít seem to matter how smart are you, how many
seminars you attend or how many hours you spend analyzing the charts, you
just canít seem to prevent that invisible hand from depleting your trading
So why do traders lose? Whether you are a seasoned professional or just
thinking about opening your first trading account, the ability to stop the
invisible hand is a real challenge.
To be a consistently successful trader, then you must have a defined
trading methodology, which is simply a clear and concise way of looking at
markets. Guessing or going by gut instinct wonít work over the long run.
A Lack of Discipline is main invisible hand who takes out your money. If
the way you view a price chart or evaluate a potential trade setup is
different from how you did it a month ago, then you have either not
identified your methodology or you lack the discipline to follow the
methodology you have identified.
In very simple terms a day trader will buys
and sells with a very short period which is typically measured in minutes
with trading positions being opened and closed within the same trading
day. Day trading is particularly suited to high volume, volatile markets
such as the Forex but is certainly not limited to currency trading.
As a day tarder you will be working to very short time frames during the
wave of a trade as it gains momentum and the jumping off as it crests in
order to ride the next wave. Spotting the waves as they roll in and
knowing just when to jump on and jump off requires both skill and
Day trading in its truest form is a risky business and if you want to try
you should know exactly what you are doing as, while it can be very
profitable, it can also produce very large losses very quickly.
For those who enjoy the excitement of the roller coaster ride then day
trading can be both exciting and profitable but it is not something for
the novice forex trader and should only be contemplated once you have cut
your teeth in the world of currency trading and gained a fair amount of