To Be or Not To Be an Intraday Trader
Most novice traders are attracted to Forex mainly because of the vision of getting rich quick. They often confirm this by reading various trading "boulevards" or watching American films from the Wall Street environment. Sounds great, a few deals a day and the bank account is bursting at the seams, who wouldn't? But the reality is diametrically different. The "few trades a day" is referred to in trading as intraday trading and it is one of the most demanding disciplines that requires knowledge, skills and time. That is, something that beginners usually do not have.
What is the reality?
A large percentage of new traders entering the world of intraday trading usually do not have the appropriate knowledge to succeed. It is no exception that many of them consider education relatively unnecessary, because they have the impression that when they watched several films and read one book on trading, they immediately became seasoned professionals in the field and no one can on their way to success. and nothing to stop.
In practice, the reality is not long in coming, and the first heavy losses often deal such a blow to these traders that they often end up trading for good.
A factor that cannot be learned or acquired other than by active trading and observing how markets behave and react to world events. If someone thinks that they will gain experience only by analyzing historical prices, or that they do not need them to trade, then the truth is somewhere else. Everyone who has already been through this knows so well that there is a big difference between trading with the "experience" gained by demo analysis and with the EXPERIENCE that the trader will gain when actively trading.
Another variable, which is an absolute necessity in the case of intraday trading. Lack of time means missing important opportunities, putting pressure on the psyche and, ultimately, unnecessary mistakes that result from a lack of concentration, because the trader does not have time at some point.
Relative advantages and disadvantages of intraday trading
From long-term trend movement, you can often get more from smaller trades than from a long-term position. This is logical because traders have the ability to trade market corrections that may occur in the same price range.
Lots of opportunities
Even in terms of the total number of potential opportunities, intra-trading may be more interesting than trading over longer time ranges. Long-term trading, thanks to fewer opportunities, is certainly not as actionful as intra-day trading, which can ultimately also be considered one of the benefits.
Just as relatively fast profits are an advantage for intra-day trading, so one of its disadvantages is potential losses, which can many times exceed the daily losses earned in long-term trading.
A significant disadvantage is the time-consuming nature of intra-day trading. Intra-day trading is de facto a form of full-time work that requires being vigilant for at least 8 hours a day / 5 days a week.
So to be or not to be?
If the trader is full-time or part-time elsewhere, which limits his time, then thanks to what has been stated and described above, intra-day trading may not be the best choice. On the other hand, if he has the time to spare and also has the desire and enough energy to really face the most difficult conditions that trading offers, then becoming an intra-day trader can be the right choice and even the way to that dream of quick wealth.
If you are interested in trying trading on your own with first-class trading conditions and a professional forex broker, then do not hesitate to try our demo account, which can be set up on our website completely free of charge and without risk here: www.purple-trading.com/en
We wish many profitable deals!
Purple Trading team
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