DAY TRADING IN FOREX

FOREX DAY TRADING TIPS

Why should one invest in foreign currency? Compared to other financial markets, why is forex market better? There are few unique benefits and advantages in forex day trading, online trading is the soft tissue. For beginners, there are number of trades and the most varied. Time flexibility and long trading hours is the fact, why the forex market never shuts down. It is the liquid market globally, with a daily circulation of $2 trillion US Dollars. Forex day trading is carried in all cities, not only in major cities and markets of US or Europe, variety of factors are available that influence the values of foreign currency. Per day turnover of forex market in last 17 years have been increasing. Here is a list of per day turnover in last 17 years.

April 1989-$500 billion
April 1992-$750 billion
April 1995-$1.18 trillion
April 1998-$1.48 trillion
April 2001-$1.16 trillion
April 2004-$1.88 trillion
These figures indicate that the daily turnover in forex day trading is increasing yearly. It is expected that within a decade or less turnover of forex market will move to three trillion dollars.

Forex Market on the way to Automation

It is known that the forex market is on the way to automation field and is going to be an automated process; everybody will like to have a big piece of cheese. Therefore, you better think one step ahead before and unwrap a forex online trading account. In general, the idea of automation is spreading up today into the world and in every aspect of life particularly in the field of technology and day-to-day devices. It has also spread its way into forex day trading market and into the arena of inter-bank spot forex. Forex market has upgraded itself and is changing into an automated system. Most work environments and dynamic finance arenas for a few reasons prefer the automated process. Forex market and other commodity markets have adopted this automated forex system. In the next paragraph, you will come to know why it is more beneficial for traders.

Manual Methods in Existence

As compared to the automated trading systems, the productivity is not so effective. For beginners, the automated forex system enables the trader to take any trade in real time. You can do forex day trading like a mad man, get involved in forex market anytime anywhere. When it comes to automated systems, transactions are of millisecond, and a manual system can embarrass a trader no doubt. One more benefit of this automated system is the tracking method, it tracks about the traders consecutive losses and makes the traders alert from taking day trading trades in future. You can trade in so many countries and different trading zones at once. You can continue your trading even at 12am in New York, you can transact with the markets of Tokyo or London. The automated system allows you to set your own trading strategy if you are facing any difficulty. Simultaneously, using different markets you can establish strategy of your own, which warn for some time about trends and forex trades for half an hour or so. If you remember correctly, we discusses before that forex day trading is the liquid financial market globally and secondly as it became a automated system its liquidity went up.

Solutions to Manage Risks

The automated system provides solutions to manage risks our in forex day trading and in trading markets. The trades are conducted in quick time through the automated system therefore the risk factor is less when it comes to payment. Meaning chances become less of payment not made in time, due to the automated technology and advancement. The automated also helps keep an eye on problems that take place in the system. As it is already known that the daily turnover this huge financial market is two trillion US dollars. Incredible opportunities and doors can be open through currency trading system.