Day Trader Definition. A Day Trader is a speculator who takes positions in stocks, commodities or currencies that are then liquidated prior to the close of the same trading session or within a 24-hour period. Day Trader’s are not interested in the intrinsic value of the security traded. They prefer to trade based on technical analysis and related indicators to secure short-term profit opportunities that market volatility provides. Trading strategies are similar in style to those employed by “Swing Traders” that look for profitable trends over a 1 to 4 day time horizon. Typical forex day-trading strategies are referred to as “scalping”, a technique designed to accumulate many small gains where positions are held for a matter of seconds, a minute at the longest. Quick entry and exits reduce the major downside risk of a massive negative swing in the forex market on a specific currency pair. The strategy relies on the consistency of certain pricing patterns to repeat. As with all high risk trading strategies, experience gained on real time demo accounts is paramount before any attempt should be tried with real capital in the forex market.
Forextraders' Broker of the Month
ForexTime (FXTM) is an award-winning platform that certainly has the feeling of being set up by people who know what they are doing. The firm demonstrates an understanding of what helps traders make better returns, and its success can be measured by the fact that it's doubled the number of clients it supports in recent years. The fact that the broker has grown to have more than two million accounts suggests it is getting things right for clients.