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How to Day-Trade Forex?

May 5, 2021
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Several investors would like to know how to day-trade forex and make profits with fluctuations in the forex market. This is something very interesting considering there are financial gurus that promise you to make lots of money online and trading forex. 

However, there is no golden rule on how to day-trade forex. If you want to learn how to master the charts and trade on a daily basis, you will need patience, practice and you will also have to learn from mistakes.

In this guide, we share with you valuable information on how to day-trade forex and which are the things you should take into consideration. 

What is the Forex Market?

The Forex Market is one of the largest financial markets in the world. It handles several trillions of dollars per day and it is the market where investors can exchange currencies from all over the world. 

If you want to exchange USD for EUR or JPY to USD you can do so through this market. Companies, retail investors and governments participate in the forex market. This is why it is one of the most liquid and efficient markets in the world. There are dozens of trading pairs with large volume that users can trade. 

By trading in the forex market, investors are able to make profits on the price difference there could be between fiat currencies. However, it is also possible for buyers and sellers to get access to it and buy and sell currencies according to their needs. 

We all participate in this market directly or indirectly. For example, if we travel and purchase a foreign currency, we are directly involved in the forex market. If we buy foreign goods or services and we pay with a credit or debit card we are involved in the forex market in an indirect way. 

How to Day-Trade Forex?

If you want to know how to day-trade forex, then you are in the right place. But let us tell you that there is no magic or solutions that would help you trade in just seconds. Everything requires time and knowledge. 

This is why at Apexbull we offer the best education courses for individuals that want to learn how to day-trade forex and get involved in the market. 

Day trading is an activity that involves buying and selling assets, commodities and currencies on a daily basis and profit with their price fluctuation. This is basically buying low and selling high. Although this sounds easy, it is more difficult than what many individuals think. 

The goal is of a day-trader is to get as many winning trades as possible. This can be achieved by using fundamentals or technical tools. Nevertheless, day-trades would mostly be focused on technical indicators and eventually on news that could change the direction of a trading pair. 

Some of the currency pairs that you can trade in the Forex market include EUR/USD, USD/JPY, GBPUSD, NZD/USD, AUD/USD or USD/CAD, among others. Most of the largest currencies in the world are available for traders. Nonetheless, you should take into consideration that there are some currencies that are not liquid and others that fluctuate erratically and that are not used for trading. 

Technical and Fundamental Analysis

As we mentioned before, it is certainly important to perform technical and fundamental analysis in order to day-trade forex. Fundamental analysis involves using different indicators such as exports, imports, and central bank decisions linked to a currency in order to place trades. 

Technical analysis requires users to implement their trading strategies using indicators such as volume, moving averages and trendlines or Fibonacci levels. Of course, the most advanced strategies combine both technical and fundamental indicators. 

If you are a newcomer, then reading and learning about how to day-trade forex could be one of the best ideas before starting to trade. 

Final Words

Trading forex is something that can be done by everyone, but that not everyone will do profitably. This is why it is certainly important to get the necessary knowledge and experience in order to be profitable in this market. 

However, there are some things that you should take into consideration before you start trading in the forex market:

  • You do not learn how to trade in just a week
  • You will not make 100% profits per day
  • Don’t use leverage if you are not an expert trader
  • Never invest more than what you are able to lose
  • Combine fundamental and technical analysis