It is a popular trading strategy where you buy and sell over a time frame of a single day’s trading with the intention of profiting from small price movements.

Day trading is another short-term trading style, but unlike scalping, you are typically only taking one trade a day and closing it out when the day is over.

These traders like picking a side at the beginning of the day, acting on their bias, and then finishing the day with either a profit or a loss.

They DON’T like holding their trades overnight.

Day trading is suited for forex traders that have enough time throughout the day to analyze, execute and monitor a trade.

Typically, day traders rely heavily on technical analysis when executing their trades.

Monitoring short-term price action is used to identify optimal entry and exit positions.

If you think scalping is too fast but swing trading is a bit slow for your taste, then day trading might be for you.

You might be a forex day trader if:

• You like beginning and ending a trade within one day.
• You have time to analyze the markets at the beginning of the day and can monitor them throughout the day.
• You like to know whether or not you win or lose at the end of the day.

You might NOT be a forex day trader if:

• You like longer or shorter-term trading.
• You don’t have time to analyze the markets and monitor them throughout the day.
• You have a day job.

Some things to consider if you decide to day trade:

Stay informed on the latest fundamentals events to help you choose a direction

You will want to keep yourself up-to-date on the latest economic news so that you can make your trading decisions at the beginning of the day.

Do you have time to monitor your trade?

If you have a full-time job, consider how you will manage your time between your work and trading. Basically….don’t get fired from your job because you are always looking at your charts!