Forex trading in one day has become popular due to the introduction of online platforms of all scales, and more recently, thanks to various gadgets that allow you to enter the market from anywhere in the world.
Besides, short-term day operations have become more relevant in recent years amid high political and economic uncertainty.
Human nature is designed so that we tend to strive for short-term benefits. Therefore, it is important to understand the intricacies of working within the day and consider strategies, prospects, and risks for a day trader. It’s better to do this with a reliable broker like the DotBig platform.
Forex Day Trading: features and benefits
So, day trading is a popular way to speculate on the markets. It is a method that involves opening and closing trades on the same day. Therefore, the volume of your trade depends solely on you: you can do it once per session or less often, or open positions more often as new opportunities arise. This strategy is perhaps best suited for those who want to take advantage of short-term price fluctuations in financial markets.
Typical day trading strategies on DotBig Forex involve registering many trades. These transactions can be opened within minutes or hours, but only during the periods when the exchange is open. The day trading approach can be used to trade any asset, such as stocks, indices, forex, crypto assets, and commodities.
Day trading is an approach that differs from investing. It requires additional time, effort, and understanding compared to other trading strategies, so only those users who understand the risks should work with it.
Advantages of day trading
Here are some benefits of day Forex trading:
- Registering a larger volume of transactions in a short period opens up additional trading opportunities.
- Running transactions using a wide range of strategies and asset types, provides greater flexibility.
- Trading without overnight risks.
Trading with DotBig
DotBig is an international Forex platform offering us many financial assets and tools. One can start trading here with only $100 as a deposit. For the convenience of investors, there is not only a web platform, but also a mobile application for Android and iPhone devices.
The main competitive advantage of the DotBig exchange is its convenience and multifunctionality. The platform offers optimal conditions for novice and experienced investors. Moreover, a wide range of liquid assets, all the most important markets, and a high level of security – thanks to these conditions, the exchange has an excellent reputation and many positive DotBig reviews.
Advantages of DotBig
Depending on your level of trading skills, the exchange offers particular advantages.
For novice users:
- Risk-free studying: Novice clients can learn how to buy and sell CFDs, stocks, and other assets without risking real money.
- Trading skill improvement: Practice running trades, analyzing market trends, and making informed decisions.
- Deep learning of trading platforms: familiarization with online terminals and tools of the DotBig exchange for successful work.
For experienced clients:
- Testing new strategies: Experienced traders can test new Expert Advisors and strategies without financial risks.
- Adapting to changes in the market: Keep track of changes in the market and adapt your financial strategy accordingly.
The DotBig investments company stands out from other Forex brokers as it provides a comprehensive trading landscape. Offering the newest IT services, advanced educational resources, and high-quality customer support, DotBig provides users with everything they need to succeed on Forex.
Together with the DotBig broker, you can master day trading strategies faster. Keep in mind these points:
- Day trading is the opening and closing of a trade or several trades before the markets close.
- Day Forex dealers mainly trade currencies and indexes as they have high liquidity and narrow spreads.
- A well-thought-out risk management strategy is needed to prevent loss of profits.
The daily trading style eliminates the possibility of sudden movements or jumps overnight, it is dynamic and allows you to earn.
Below, we give 5 tips on how to trade in daily mode and earn more with DotBig.
Five Brilliant Tips for Day Trading from DotBig Experts
Day trading is the purchase and sale of financial tools in one day. With proper application, these five tips can improve your experience.
- Be aware of what is happening in the markets
- Allocate funds wisely
- Be prepared to spend a lot of time
- Make transactions on time
- Stay realistic
As you probably know, important news can affect the market movement. Stocks and national currencies are particularly susceptible to price fluctuations that occur following the release of news. Remember that fundamental analysis factors can affect the outcome of deals, even if you trade on short time intervals.
The amount of money you allocate to each trade must be precisely adjusted. It is better to invest no more than 3-5% of the total balance of funds. Thus, you can protect yourself from a series of failures, which all traders face sooner or later.
Day trading is a time-consuming endeavor. Many online traders spend as much time on Forex dealing as ordinary people at work. Day participants don’t have working hours, so they try to keep an eye on the markets all the time.
It is also crucial to choose the right moment to open deals. Experienced ones enter the market at the moment of the highest volatility, which usually occurs at the beginning of a trading session (securities, indices, funds, and commodities trading). The situation is somewhat different in Forex. Since Forex is traded 24/5 worldwide — the most famous exchanges are in New York, London, Singapore, and Tokyo — the greatest volatility is observed when more than one exchange is opened. However, some experts, on the contrary, recommend that beginners trade when volatility reaches its lowest levels to manage risk.
No Forex strategy wins 100% of the time. Depending on the potential growth of the instrument you are trading, it may be enough to close 60% or even 50% of all deals with a profit to stay on the money. It all comes down to winning more than losing.
If you remember and apply these DotBig broker tips during day trading, you will benefit.