Day Trading Forex

Day trading Forex is probably the most difficult task to any trader. Most Forex newbies find day trading extremely attractive. Since Forex brokers allow to use huge margins, beginners try to use too much margin and capture small profit trades.The truth is that it’s extremely difficult to make money consistently day trading Forex.First of all, the Forex market is open 24 hours a day. A trader can’t be watching the market all the time, so it will be extremely difficult to be able to spot all the good opportunities the Forex market provides him in a day. Add to this the fact that Forex market lacks volatility during most of the day. If you try to day trade, you can be hours and hours in front of the computer waiting for a good opportunity that simply won’t appear. This is not only bad because you won’t be able to profit, but you also make much more mistakes. When a trader spends too much time waiting for a trade, his mind can trick him and force him to make some costly mistakes.The spreads that appear to be so small on the most common currency pairs, are extremely high for day traders. Sure, 3 pips for example seems like a small spread. But this small spread means you’ll lose 3 pips every time you buy and 3 pips every time you sell. This means that you’ll be losing 6 pips every time you open and close a trade. If you make for example 5 trades in a day, you’ll be paying 30 pips to your broker. So, in order to make some money when day trade, you have to make much more than 30 pips a day in order to pay the higher fees.Last but not least, day trading Forex is extremely stressful. This is true in any financial market, but on Forex tends to be much worse. Due to the 24 hours period and the lack of volatility during most of the day, day traders have a hard time trying to make a consistent profit.Overall, day trading Forex is extremely difficult, and should only be approached by the most experienced traders. Even experienced traders have difficulties in trying to make money on day trade. So, if you’re just starting on Forex, you should avoid day trading and trade on longer time frames.