Is day trading for you – trading forex for a living

This is a part of Forex trading for beginners tutorial. You can Download the whole tutorial as pdf here (right click and save as).

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Many new traders think that they should be day trading to make some serious money. That is a mistake. There is nothing wrong with day trading, but now you have many possibilities to trade on higher time frames. You have pending orders, you can easily set stop loss and profit target or set trailing stop loss. Thanks to that it is easy to manage your positions, even if you have to be away from computer for some time.

There is also one addition fact, important for new Forex traders. There are bigger chances that you will lose money on lower time frame than on higher time frame. It should be a solid argument for new traders to start trading Forex on higher time frames like 1-hour or 4-hours. They have much bigger chances here to stay in the game and to make some profit.

On lower time frame you can meet so often sudden changes in price. What’s more, algo trading is taking now big part in price movements. You have to be in front of your screen all the time to follow action and react in time. It is very hard.

As pointed before, you can make good profit on higher time frames and you do not have to follow price action for the whole day.
Also, trading on higher time frame is a pass to day day trading. You should prove to yourself that you can make money on higher frame, that you can trade. You must collect enough trading capital. You can’t just jump in and start day trading when you are not an experienced trader and just hope that you can make it. Numbers are against you so you must be prepared.

Stress is another important factor. When you are day trading, you open larger positions for shorter time of period. It is not for everyone.

Menu for Forex trading for beginners tutorial

Part 1. Introduction to Forex trading Part 2. Trading tools Part 3. Money and position management in Forex