Day trading.
In most textbooks, trading on the stock exchange is divided into several main periods - short-term, medium-term and long-term; day
trading or trading within one day is a separate category.
Day trading implies that the open transaction will be completed on the same date, the reason for this approach is some technical and strategic issues that we will talk about later.
Intraday trading is rightfully one of the most popular and profitable trading options, the reasons for this phenomenon are as follows.
• No swap commission - if the transaction is closed within the same day, the trader pays only the spread, and if carried over to the next day, a swap commission . And although its size is not that large, when trading solid volumes, these fractions of a percent grow to quite decent amounts.
• No risks of uncontrolled changes - if the transaction lasts only a few hours, the trader most often controls the situation on the market, this allows him to react quickly to unexpected changes and avoid losses. This is especially true for such a phenomenon as a gap , the risk of which increases if the transaction is left over the weekend.
• Maximum profitability - day trading allows you to use much greater leverage than with long-term transactions, this significantly increases trading volumes, and accordingly, profits. For example, traders using scalping sometimes earn more than 1000% profit in just 24 hours.
• The ability to use almost any of the existing Forex tactics and strategies .
• Relative ease of trading – do you think it's easier to earn 10 pips or 100 from a single order? It's clear it's 10. A long-term trade requires good collateral and is more suitable for substantial deposits with four zeros. And not every trader has the patience
pullback in the forex market Day trading is quite affordable; you don't necessarily have to trade exclusively using scalping; some traders maintain intraday trades for more than 12 hours.
However, one key rule to remember is that a trade must be closed at least an hour before the next day begins. Moreover, forex brokers calculate the day differently than Moscow time.
