Forex Day Trading

The foreign exchange market is where foreign currencies are traded in pairs. Basically you trade one currency for another based on market direction. Because you're trading forex pairs, you can make profitable trades in both directions.

The foreign exchange, or forex, is similar to the stock market in that it goes up and down. But that's about where the similarities end! Stock markets are only open for five days a week and close every day at a certain time. Forex traders can trade foreign currencies around the clock, seven days a week. Don't just jump into it overnight though. There are some things you need to know first. There isn't much of a learning curve, but the forex trading market can be a little daunting at first glance. The first thing you should understand are the different ways to go about forex trading.

The first and most conservative type of forex trading
is what we call position trading. This is a popular method among private investors and forex traders with smaller account sizes. The reason is because you don't need to spend much time in front of you computer. Position forex trading carries a low amount of stress. However, profits can be limited as well, and your positions are generally open for 3 - 5 days. Position forex trading can cause you to "float" large losses from week to week.

Floating losses means that your position has moved in the negative direction although you expect it to come back around and return to profit. Thus you are "floating" the loss into your next trade session.

The second, and probably most popular way for forex trading is day trading. Forex day trading
refers to the amount of trades and open position time frames. Generally speaking a forex day trader will open various positions based on technical data, news, or both with the expectation that his profit goals will be met within 24 hours. Forex day trading investors will place one to three open orders and expect to close them the next day, at which time, they'll look for one to three more orders to open.

Forex day trading is popular among private investors, institutional traders, and large financial firms. It doesn't require that you spend countless hours in front of the computer. But the forex day trader should have at least a couple hours per day to dedicate to forex day trading
. It is also wise to check up on your positions throughout the day. So if you work in an office environment where you have access to internet, forex day trading may be right for you. Profits are moderate for day trading.

This is the most popular method of forex trading
among the "big boys" and the small time traders who have an automated forex trading system. The number one reason is because the most profits can be made by opening and closing multiple orders per day. It is not uncommon for an intraday forex trader to have 5 or 6 open orders at any one time. Another term for intraday forex trading is called scalping.

Intraday forex trading requires either a good amount of analysis in front of the computer or an automated forex trading software program, but the rewards are great in either case. These types of trades can often yield 100 pips or more per day. This is around $100 on a mini account or $1,000 on a standard forex trading account. This is the method of trading everyone should be doing. However, because of the extensive analysis you need to do, it can be prohibitive in many cases. But there is a solution for intraday forex trading for the small time trader. Automated forex trading
software programs.

There are a few automated forex trading programs out there. But we recommend only one automated forex system, and that is the Forex Autopilot System by Marcus Leary. However, we do recommend other forex trading systems that are not automated, but can readily be applied to either position forex trading or forex day trading, and still produce some nice profits. Check out all of our links to find what works best for you.

By auto trading foreign exchange markets, you can still focus on your career or day job because the software will trade the forex market on autopilot.

The software can easily be installed on any pc and set to run on autopilot. There are also different software packages to choose from. Each is programmed to run a little differently based on the users aversion to risk. If you can handle a good amount of risk you could try something like Pip Shark or other stand alone expert advisors. These can be risky, so you shouldn't risk more than 10% of your total trading account on any given position. This is usually a built in setting that the user sets up based on risk.

Many people are turning to autotrading foreign currency because it allows their portfolios to still increase in value even in the bad economy. You too should auto trade forex.

Think about it, you set up the initial settings, turn the program on, let it run by trading your forex account on autopilot. This is the best way to profit in this economy.