Day Trading is the buying and selling of financial instruments within the same trading day where the trader squares off or liquidate all positions by the end of the trading day. In foreign currency trading, a day refers to the trading hours in any of the 4 market sessions (Sydney, Tokyo, London or New York). In contrast to position traders who’d wait out the 24 hour forex market until price objectives are reached, forex day traders confine their trading activities within the trading hours of the particular session they are in. They don’t “wait out the market” instead they take advantage of small price movements and are contented with making small but consistent profits. A day trader is akin to a ‘scalper’ (or one who scalps for profit) and employs an almost similar strategy of getting in and out of the market fast. Contrary to popular opinion, day trading can be profitable as long as one prepares himself adequately before engaging into the trade.

There are a lot of successful and well known day traders around. Many of whom have built fortunes out of day trading. Most of them employ their own forex day trading systems which unfortunately most of them are also not too willing to share with others!

This leads us to ask ‘what makes up an effective day trading system?’

An effective day trading system is:

– One which can identify and take advantage of every market opportunity that presents itself.

– One which is equipped with trading tools that includes charting software that can help identify short term price trends, establish where minor and major resistances and supports are, takes stock of pending price reversals before they even happen.

– One which can calculate exact entry and exit points and generate buy and sell signals for you.

– One which has a built in stop loss mechanism in place.

– One which employs an efficient money management strategy.

– One which generates more profitable trades than losses.

– One that sets a profit objective for you for the day and stops you from trading when the objective has been reached.

– One which can prove its profitability with back testing.

There are many automated forex day trading systems being sold in the market today. All of them claim to have generated substantial profits. All of them are claiming to be the best. However, what is good for others may not be good for you. So, if and when you do decide to get one of them, make sure it has all the requisites of an effective day trading system as enumerated above. It can be back tested and should also be able to produce favorable results on back testing. Most important of all, it should come with a 30 day money back guarantee to ensure that you can get your money back.

There is something else that you should know. Two thirds of upstart forex day traders lose their shirts. The other third lose their pants! Wizen up and refuse to be part of this statistic. Get adequate knowledge and develop the necessary skills to be a day trader before you even try to make that first trade.

Are you looking for more information regarding forex day trading systems? Visit http://www.forextradingforaliving.com today!

Are you looking for more information regarding forex day trading systems? Visit http://www.forextradingforaliving.com today!

Author Bio: Are you looking for more information regarding forex day trading systems? Visit http://www.forextradingforaliving.com today!

Category: Finances
Keywords: forex day trading systems, trading systems, forex day, forex