For beginners who would like to try their hands on day trading in the Forex market, they need to know which currency pairs to trade. Forex trading is different from stock trading. Day trading Forex requires much more knowledge on technical analysis and Forex strategies. For a newbie Forex trader, the best way to learn the art of Forex day trading is through Forex coaching. Forex coaching is very helpful because unlike the stock market, the Forex market has more unpredictable factors, such as government and economic news.
For day trading Forex is much better, with much higher volatility. Swing trading stocks is better for longer term and short-term investing, it'll work best on Forex. Swing trading stocks is ideal for day trading, since day trading means that you need to wait for the news to come out, in order to determine if the price is going up or down.
It's a bit complicated that the stock market has much higher volatility than the Forex market. Because the stock prices are affected by a number of variables outside of the companies' control, the volatility can be much higher. Also, because there is much less trading hours, the chances of achieving significant profits increase. However, if you have no time for monitoring the volatility, day trading stocks is not for you. You should be aware that although day trading stocks have higher volatility than other types of investing, there's still a great deal of risk involved. To make a profit, you need to buy low and sell high.
In the electronic trading platforms, day traders can use a variety of financial instruments, such as options, futures, currencies, CD's and more. As an example, if an investor wants to invest in stocks, he can buy and sell stocks via options. If he wants to trade in currency, he can do so via the futures market. He can also trade in commodities, indices, indexes, bonds, ETFs, derivatives, precious metals, oil, and more. Although financial instruments are great for day trading stocks, they should only be used with proper knowledge and understanding.
Before trading stocks, traders will need to open a margin account. This is just like a traditional account, where the trader needs to deposit a specific amount of money to invest. Since stocks and futures can be purchased and sold at any time, traders may need to have money available to buy and close their positions, within the specified time frame. On the flip side, since futures and options do not require much cash outlay, they're ideal for beginners.
Another thing you should take into account is the fees that brokers charge. It's usually best to find a broker who has low commissions, since high commissions can eat up your profits. Another thing you should consider is the minimum amount of money you must deposit to start trading. Since day trading stocks involve higher risks, you should ensure that you don't risk losing too much money, otherwise it's not worth the effort.