Correction of myths about Forex day trading
As a trader who uses short-term Forex trading strategies and Forex day trading, you may receive some unique and insightful insights into the real benefits and drawbacks of Forex day trading.
As a trader, you have also had the opportunity to hear many quotes regarding day trading Forex that might be highly believed by people, but simply do not stand up to any scrutiny. Many of these people focus only on the topic of Forex day trading. So if a trader is interested in Forex day trading, he should know what is right and what is wrong.
Myth #1: Day trading Forex has much more risks than long-term Forex trading.
Without any doubt, the risks of short-term Forex trading are higher. Because in any one Forex trading trade, the trader risks much less in Forex day trading than the trader risks in short term Forex trading or long term Forex investment.
What gives this the appearance of more risk is that the trader usually takes more Forex trades. Even on his worst day, no one ever lost as much as they lost in short-term trading. Yes, this is true. Even on the worst day, you might collect all your day trades, one still hasn’t met what he lost with some of his short-term Forex trades despite it being just one trade.
Experience shows that short-term Forex trading and investing are riskier than day Forex trading. Are you surprised? A trader doesn’t have to be, it’s a matter of logic. How risky is day trading Forex versus short-term Forex trading? If short-term Forex trading involves a large number of potential financial losses that are greater than any day Forex trading, what will be the natural outcome when Forex trades go wrong?
Myth #2: Forex day trading is gambling
Reality and logic say that any trade is gambling if the individual trades Forex without a plan or allows emotion to control his decisions. But the main difference is whether or not the trader puts the odds in his favor. If he does, then Forex day trading, whether he’s talking about short-term Forex trading, Forex investing, or Forex day trading, they all become a business. If the trader cannot put the odds in his favor, then all of the above can be considered a gamble.
Myth #3: Daily Forex trading connects a person to a computer all day long
This fable is funny. A typical rolling day is two hours in the morning and one and a half hours in the afternoon, with a two-hour lunch break. Even when an individual is trading, he does not watch the Forex market all the time because he is waiting for his setup to be developed, often playing a game on the computer or watching a video while he waits.
There is a specific time when the Forex market trends during the trading day, which is the most profitable time to trade. And during a recession time when the Forex market is in a state of consolidation, there is no need for one to monitor the market.
There is more than a very simple and easy way to alert the trader when it is time to trade. The important thing is that frequent rest time should be the basis, not scarcity.
Myth #4: Forex day trading is stressful
Forex day trading is stressful if the individual is losing money, Forex day trading is easy if the trader is making a lot of profits. It is not trading that is stressful, but how well one adapts to it and whether it is successful or not. The stress of daily Forex trading usually results from two things; First, poor trading and the inability of the individual to emotionally adapt to the fast pace of trading.
Forex day trading requires a quick response because it is done in real-time. And because the individual does not have much time to analyze the situation and then do a re-analysis before making his decision, as he might do in short-term Forex deals. So a Forex day trader may need to know his Forex day trading method very well, to the point that the trader is almost second nature and also needs to keep his emotions under control.
Myth #5: In Forex day trading, a trader can make the most money from long-term Forex movements
A Forex day trader can double their money, triple it, quadruple it, and even more money that is trading in a long-term Forex trend. This is because the Forex market will automatically weave up and down as the trade develops, allowing the individual to make recurring profits.
After one has done both, one knows firsthand that successful day trading can turn away any short-term Forex investor or long-term investor when it comes to trading profits.
The only time a short-term Forex trader can make more trading profits is when there is a gap in the Forex market, but even when this appears in successful Forex day trading, one usually earns much better in long-term trades.
Myth# 6: In Forex day trading one loses big profits due to gaps overnight
The trader misses trading losses overnight. Trading gaps indicate high volatility in the Forex market and in many cases the market price will swing wildly in all directions.
But the opposite is true as daily Forex trading protects the individual from risks overnight. But here is the sudden trading turnaround overnight price gaps; It is not uncommon for the Forex market to close a price gap overnight, which gives the Forex day trader a great opportunity to reap the resulting trading profits overnight. There are actually some Forex markets that are not suitable for day trading, and others that are suitable for day trading.