Today we begin a new series of lessons that begin by explaining the different types of traders. Most operators can be classified into three broad categories, Day Trading, Swing Trading and Trend Trading.
Day trading is the most popular forex trading, according to information on the number of requests for the categories above. Therefore we will begin to examine the advantages and disadvantages of this type of negotiation. A day trader is that normally ends with the purchase and sale of a monetary instrument in one trading day. The main advantages I think many companies are trading day rather than trade is completed at the end of the previous trading day while you are unaware of the exposure at night. This is the most important point in the stock and futures markets when it is difficult or impossible when the normal opening hours are completed.
As most of you are aware of the difference between the end of the first and early the next day can be great if a major event, other than trading hours. Put day traders who hold positions at risk throughout the night, when they are forced to take more losses than they really wanted. Another good head start, I think most dealers are more than skilled day traders are very animated when they enter and exit the trade quickly with merchants who want success rates and cut their losses quickly. They can handle more chances are available for operators with long-term.
The biggest drawback I think many traders place to day trade is the increased participation of transaction costs. As the day of operation for operators to generate more profits to gain more commissions and pay for the spread of many times. Transaction costs are higher and they should produce more revenue than the policy that does not make transaction costs much more, all other things being equal. Another weakness trading days so I think that most traders do is cash the quantity of resources required during the period of great size. Technical negotiations is that the first phase, the focus and point of view, because the merchants in general, days spend most of their time watching the computer screen, without attention, and maps of superior technology and high power for the evaluation of new long-term traders.
Keeps the spirit and wonder why is it that day trading is the most famous king commercial? In my opinion, is why the benefits I mentioned above, which are very attractive to many traders. But no, fortunately, I think the biggest reason is that day trading gives people who tend to bet big gain determine the Betting Market. As discussed earlier in our series on the psychology of trading is not a good reason to trade is a major reason for the failure of day traders fail.
That's all for today In the next post, we will consider the second most popular style of trading, swing trading, therefore, we hope to see you in this lesson.
