What is Day Trading?

There is no single best way of profiting on the Forex. Instead, traders use various strategies which they constantly modify and update in order to become successful. You can choose to think long term by opening a position and holding on to it for an extended period of time spanning days, weeks, or even months. Doing this may magnify your potential profits since trades that are given time to grow will be able to move more and record pip changes.

Not all traders follow this route, however, because some choose to get into day trading. In this mindset, positions are opened only to be closed after the shortest time possible to record a profit. Instead of relying on large long term movements, day traders make a profit by making multiple trades in a single day that have a small return individually, but, when pooled together, can total a sizeable amount. To assist them in their trades, day traders often take advantage of high levels of leverage to turn minimal pip movements into profits. 

This strategy involves a high level of risk due to the probability of rapid movements that are unfavorable to the position happening. While high leverage multiplies profits, it also multiplies the losses you can incur if the unexpected happens, causing you to record significant losses.

Day trading is not suitable for all traders because of the small amount of allowance it gives for losing trades. But, depending on your preferred strategy and mindset, you can still decide to try and see for yourself if you have the ideal discipline to be successful with it.