Forex Analysis Part 3
Today Day Traders usually use 4H or 1H time frame as a long term trend determiner. As for daily execution they prefer to use time frame 15M. Due to the time frame and short trading time, their profit targets are not too big. Only in the range under 100 points. Most are around 30-50 points. But precisely because their profit targets are not too big then they can do the opening position several times in one day. In fact I once met a day trader who traded up to 13 lots in one day when the initial deposit that he entered only for $ 500 !! This is a very active day trader. There are many benefits to be gained when a person does day trader. The main thing is the initial deposit is done. A day trader can start with a capital of $ 1000 only. Even some who are proficient bertrading able to develop funds up to hundreds of percent in a few months when they start only from $ 500 only. However it is not recommended to start trading with only $ 500 capital due to the magnitude of the risk that may occur if you are a beginner. However capital can not be deceived. Do you agree with Pak Teacher's children?
Another benefit when you are trading with day trader pattern is the many opportunities that can be taken. Due to the profit target pursued by no more than 100 points, this opportunity can arise almost every day in different types of major currency pairs. If you have enough money, whether the price is in a wave of up or down, a day trader can get profit from there. The day trader is not too dizzy about the long-term trend like a Swinger. This is due to them trading is today. By looking at today's moves then that is the market condition that can be taken. That's why they use relatively shorter time frames like 15M or 10M.
Shortages in trading with a pattern like this of course there. If the Swinger has an advantage in the easy control of the position dah dah price, this is precisely the constraints of a day trader. A day trader should be strong enough to monitor price movements several times each day. Otherwise they may lose their chance of opening positions. This impacts on the likelihood of a day trader experiencing psychological distress caused by price changes from second to second. You who have opened a real account or are currently running a real account know what I mean. In real accounts, the psychological point plays a very important role far beyond any pressure. Another drawback is the advantage of a day trader is the degree of liveliness. The more active a person opens the position then the risk will also be greater. So instead of getting a profit, a day trader who is not adept at reading the charts often suffers large amounts of loss in a short time.
The last trading pattern to know is Scalping type. Scalping comes from English (scalp) which means flea jump. Well trading with scalping type is more or less adheres to this understanding. Without undermining the Scalper of the world, they often take advantage of very small and insignificant price movements for a Swinger. For them, the profit of 10-15 points a day is enough that it is important is its stability.
The point is this: By taking advantage of that size, the Scalper holds that it's a lot easier than pursuing a profit of 100 points in a single tradenya. Often they also take a much larger number of lots for a one-time opening position than most traders. If $ 2,000 a Swinger opens a lot for only 2 lots in a single transaction, the Scalper can open a position up to 5 times! What if there is a margin call? Well the point margin call it for them is their Stop Loss point! But otherwise when the profit of 10 points they earn, just imagine 10 x 5 = 50 lots. Same is not with a day trader? But this time is much easier because only targeting 10 points only. Not to mention because only after 10 points profit, they can open positions many times up to tens of times in one day. Hmm ... how active they are! A scalper usually uses the time frame of 1H and 5M in their trading. 1H is useful for determining the major trend that is happening while 5M is used as a determinant of execution. Oh yes, for a scalper, spread is very important role for them. The scalpers often look for brokers with very small spreads. The smaller will be better dikar
Another benefit when you are trading with day trader pattern is the many opportunities that can be taken. Due to the profit target pursued by no more than 100 points, this opportunity can arise almost every day in different types of major currency pairs. If you have enough money, whether the price is in a wave of up or down, a day trader can get profit from there. The day trader is not too dizzy about the long-term trend like a Swinger. This is due to them trading is today. By looking at today's moves then that is the market condition that can be taken. That's why they use relatively shorter time frames like 15M or 10M.
Shortages in trading with a pattern like this of course there. If the Swinger has an advantage in the easy control of the position dah dah price, this is precisely the constraints of a day trader. A day trader should be strong enough to monitor price movements several times each day. Otherwise they may lose their chance of opening positions. This impacts on the likelihood of a day trader experiencing psychological distress caused by price changes from second to second. You who have opened a real account or are currently running a real account know what I mean. In real accounts, the psychological point plays a very important role far beyond any pressure. Another drawback is the advantage of a day trader is the degree of liveliness. The more active a person opens the position then the risk will also be greater. So instead of getting a profit, a day trader who is not adept at reading the charts often suffers large amounts of loss in a short time.
The last trading pattern to know is Scalping type. Scalping comes from English (scalp) which means flea jump. Well trading with scalping type is more or less adheres to this understanding. Without undermining the Scalper of the world, they often take advantage of very small and insignificant price movements for a Swinger. For them, the profit of 10-15 points a day is enough that it is important is its stability.
The point is this: By taking advantage of that size, the Scalper holds that it's a lot easier than pursuing a profit of 100 points in a single tradenya. Often they also take a much larger number of lots for a one-time opening position than most traders. If $ 2,000 a Swinger opens a lot for only 2 lots in a single transaction, the Scalper can open a position up to 5 times! What if there is a margin call? Well the point margin call it for them is their Stop Loss point! But otherwise when the profit of 10 points they earn, just imagine 10 x 5 = 50 lots. Same is not with a day trader? But this time is much easier because only targeting 10 points only. Not to mention because only after 10 points profit, they can open positions many times up to tens of times in one day. Hmm ... how active they are! A scalper usually uses the time frame of 1H and 5M in their trading. 1H is useful for determining the major trend that is happening while 5M is used as a determinant of execution. Oh yes, for a scalper, spread is very important role for them. The scalpers often look for brokers with very small spreads. The smaller will be better dikar
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