Day trading which is also called intraday is a strategy where you open your position only for a few minutes or hours. The special trait of this strategy is no overnight allowed; this resulted in closing all of the trades at the end of trading day. When you are using forex day trading system, you can ignore any overnight risks such as overnight rate or foreign exchange risk.
If you are a day trading strategy user, your only concern is the market of the day, how to make quick decisions, and open many positions during that day. A few of these trades will be winning trades while some other will end up as losing trades. A good system always have a way to cut loss and boost profits so even if you make more loss trades than winning trades, you still generate profits when the day ends. Your philosophy is “tomorrow is a whole new day”.
An example of trader who uses forex day trading system in daily basis is Scalpers. Scalper is a trader who exploits every sharp movement in the market to create even the smallest chance to make profits. His goal is to open as many positions as possible where each position will generate small profits. Usually his entry and exit happened just in a couple of minutes.
It may seems very demanding to make a stream of quick executed trades, but these days you don't really have to do it on your own. Like any other strategies, day trading is running with some rules, so you are able to have a good forex day trading system which will do the analysis, signals, or even the trades for you.
These systems usually based on short time frames chart such as 15 minutes or five minutes charts to make decisions. The strategy is combined by various indicators, general and neural applications, and back-testing functions to make a lot better prediction. But technical analysis is not all that exploited in this system; a good day traders will also use fundamental analysis in order to make decisions.
Some day trading system users don't believe in fundamental analysis application in short term trading, but there are cases where some news can create large influence to the market in just a few minutes and that is where a day trading system user can get his profits.
Example: Unemployment Claims, Existing Home Sales, and UK Retail Sales are a couple of news which could lead to high volatility in the market where a perfect entry will get you high profits within minutes or hours.
A good forex day trading system can be created if the makers fully grasp the important elements of day trading such as precise analytical software and multiple news sources to depend on. If all the prerequisites have been fulfilled, it is not difficult to invent a reliable day trading system.
Look into the facts of an automated system that supported by a winning scalper system at my FAP Turbo review. Find out four crucial points that you have to know first before start trading forex in learn to trade forex.