Forex intraday trading - for and against

      Forex traders are often rigidly specialised in a certain urgency of trades. Few manage to trade in the perspective of both twenty minutes and ten days. But statistics show that most professionals opt for intraday Forex trading.
      Day Trading or Intraday Forex Trading
      What exactly is it? It is an intraday trading without carrying over trades to the next day. You may execute one or more deals, depending on the size of the position. It is worth to note, that traders, who work within day, are usually engaged ONLY in trading on Forex. It's not passive income, it's not a hobby or extra income. It's a job, and they devote all their time to this work.
      Intraday trading on Forex requires diligence and thoughtfulness, a well designed system with competent placing of orders. It also requires sensible reaction to any fluctuations, caused by the fundamental factors. Moreover, intraday forex strategies are available both for professionals and beginners.
      Types of intraday trading
      Forex news trading is ideal for day trading. As soon as an important economic indicator is known, the market changes instantly, so short-term lovers of this type of trading can make excellent profits.
      Scalping also refers to intraday trading. In fact, it is just a series of micro deals in the short term. Trade on pullbacks can also be attributed here.
      Day Trading: for and against
      Opponents of daytrading argue that trading in such a short term cannot bring serious profits. Only long term investments will eventually result in high returns. It is simply illogical to close a profitable position at the moment of forecasted global movement.
      In many ways, they are right, indeed long-term trading is more profitable in the long run than intraday forex trading. But day trading is more suitable for those who do not have a huge deposit. And it can be problematic to go overnight without serious capital. And that brings us to the main advantages of intraday trading:
      1. Predictability of risks. The trader will never lose more than he can afford to lose. The basic principle of money management will not be broken.
      2. no swaps. So there is no need to rollover the open position to the next day. And it is a separate service, which is paid by brokerage firm at a separate rate. And if your position is not too large, the swap will simply eat up all expected profit. And that's assuming there is any profit at all.
      3. no gaps. Forex intraday strategies are also safe in that they do not include price gaps. An overnight gap can overshoot your set stop loss, and bring you such serious losses that they will knock you out of the market in one trade. Therefore, with a small capital, day trading remains preferable.

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