The most popular option for working on Forex is trading within one day, or if it is more correctly expressed within one day, it is the transaction opened and completed within one day that is called day trading. During its implementation, no additional commission is charged for transferring a position to the next day.
Day trader – as the name implies, this is a player who trades exclusively within the day, he tries to prevent the transfer of the order to the next day.
This type of trading has several applications and its own distinctive features, so if you decide to become a day trader, you definitely need to get acquainted with both the advantages and disadvantages of working intraday.
Trading with moderate risk.
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This is exactly this option that should be used by a novice day trader in the forex market.
Features of its implementation are:
1. Leverage – from 1:1 to 1:50, it is clear that using such leverage, you will not be able to significantly increase your deposit, but in order to drain all the money you will have to try. And this aspect is especially important for a novice trader.
2. The size of the deposit – from $ 300, it is with this amount that you can start earning, and not just train.
3. The duration of transactions – the main work of a day trader in this case is carried out on such timeframes – M30, H1, but the duration of transactions can be from half an hour to 23 hours, depending on the situation on the exchange.
4. Good profitability of trades and medium risk – by opening trades according to the above parameters, you can earn quite a lot, sometimes profit per day leaves more than 100 points, while the level of risk remains quite acceptable.
If you work according to this scheme, it is advisable not to open new trades after 23:00, since it is not known how the trend will behave, and closing a trade with a loss is always a shame.
Scalpers
A scalper is the same day trader, but conducting his trade on the shortest time intervals, sometimes the time of existence of transactions in scalping can be only a few seconds.
The scalper trades according to such rules.
1. Leverage of the maximum possible size, most often it is 1:200 or 1:500, some also use 1:1000 leverage, but as a rule, such trading ends up draining the deposit very quickly. The use of a large leverage allows you to maximize the volume of transactions, and hence the profit from one operation.
2. Deposit – thanks to the above point, in this case, you can trade and earn money with only $50 in your account, that is, you can start trading with a smaller amount, but you can earn a living with at least $50.
3. Timeframe – from 1 to 15 minutes, it all depends on the speed of the trend, the amount of rollbacks and the leverage used by the scalper.
4. Maximum profitability with a high level of risk – in just a few hours you can increase your capital several times or just as safely lose all your money.
5. Acceleration of the deposit – many traders use this tactic in order to significantly increase the amount of the main deposit in a short time, and then move on to less risky trading options.
Unlike a day trader, not every trader can be a scalper, this is a huge workload and clear self-discipline, you need to constantly monitor the market and be able to find time to rest in time. You can learn more about how Forex scalping works at this link.
