Forex day trading refers to the practice of trading currencies in the forex market by opening positions in the morning and closing the same positions before the close of the day. The intense intraday volatility of the forex market ensures that it is possible to open and close a trade within a few minutes to hours. However, you need to be adequately prepared in order to make a success of your forex day trading venture.

Forex Day Trading: The Essentials

The first step is to get a computer or a smartphone with a very fast internet connection. For beginners, I would advise that you start forex day trading with a computer, and as your proficiency levels increase, you can migrate to using smartphones for your trading. A high-speed internet connection is compulsory. Slow connections cause the price data delivered to the trading platform in the form of candlesticks to arrive late, and also delay your trade executions. Indeed, trying to carry out forex day trading with a slow internet connection will leave you extremely frustrated. I have been there and I can tell you, it is not a funny experience.

The next step is to undertake a forex day trading course to learn the rudiments of forex trading. Here you will learn what makes the forex markets tick, and you will also have to understand how to analyse the markets, know what currencies to trade/avoid, know how to trade the news, etc. You will also gain a lot of information by joining forex review sites or forex trading online communities. This blog will also provide you with information about forex trading that you cannot get anywhere else. One thing that you should also learn is how to manage risk in forex day trading. It is very important that you learn to stick to the recommended leverage of 1:100 and the recommended risk exposure of not more than 5% of trading capital, and know how to implement these on your trading accounts. No forex day trading course is complete without learning this aspect, which is the main reason why many new traders are blown out of the market in the first month.

Practicing on a demo account goes hand in hand with undertaking a forex day trading course. It is best you do your demo trading on the platform of the broker you intend to use. This will help you get familiar with the trading platform, and know how to place orders quickly and without errors.

Select a good broker. We have listed some information on the types of brokers that are available. If you can afford it, use the ECN brokers. However, most of you do not have the capital requirements, so you may have to start off with the market maker brokers. Know how to avoid the pricing issues that is peculiar with market makers.

Do not start forex day trading on a live account with huge amounts of money. Start small so you get a feel of what live trading is all about, because it is a different ball game from demo trading. Use this small account to make any mistakes that you can make, because you will definitely make some. As your proficiency improves, you can step up your trading capital.

These are the few steps that will set you on the path to starting a forex day trading career from home.