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Do Forex Traders Have to Day Trade Forex?

One of the most common questions asked about trading the Forex markets is: ‘do you have to day trade Forex?’. Day trading Forex is happens to be quite widespread however many people simply can not commit the time needed for day trading because it requires monitoring of the markets on a to-the-minute basis. There is however another approach, and that is to engage in Forex trading on an end-of-day basis.

Another question that many Forex traders are likely to ask is: ‘Is it better to trade the Forex markets on an end of day basis (with daily charts) or on a day trading basis (with 5, 10, 30, etc minute charts)?’ The answer is it depends on a person’s individual circumstances, or their preferred style of trading, the amount of starting capital, and of course the volatility in the markets.

Keep in mind that the Forex markets are 24 hour markets, this permits you to trade them within whatever your personal schedule happens to be.

Trading on an end-of-day basis will not require as much time, or be likely to cause as much stress and provide a profit potential that is no different than you might make with day trading. You will need to find a good trading method that lends itself to end-of-day trading. The trading method will have to be specifically designed for end-of-day trading. This is because many of the rules that may govern day trading will not always work with or even be applicable to end-of-day trading methods.

If traders are who new to Forex will have to understand that if you are not making any money trading Forex on an end-of-day basis you will also not fare any better in a day trading environment. This is because of all the stressful and demanding time pressures that are needed to make instant decisions on order entry, or immediate placement of stop orders and profit targets.

If you thinking about the six major Forex pairs and study the longer term charts for each pair, you will then be able to identify any long-term trends that will be able to generate significant profit over time. A Forex day trader has to be able to make fast, small profits; end-of-day Forex traders can have the advantage of patience to take longer, larger profits.

So it is not necessary that the only way to trade Forex is in a day trading environment. A Forex trader can do as well or better with Forex trading on an end-of-day basis.

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