Healthy Habits for a Day Trader in Forex and CFDs

Forex and contracts for difference (CFDs) are highly speculative investment products and investors are unable to avoid putting pressure upon themselves to successfully perform trades profitably. However, it is only when skills are used in conjunction with trading strategies that they are able to efficiently target high returns.

Which strategy to use? This is the question that every intending day trader asks before engaging in intraday trading. The best one should enable investors to effectively speculate if an asset will be higher or lower than the strike price within a maximum of 24 hours.

Monitor the Pros

Brokers like eToro provide a social trading platform where users can follow and copy the positions of the experts. eToro trading strategies are widely available and most of them come from the pros. You just need to pick the one that has a good performance so that you have a better chance of making a profit. Do keep in mind though that past performance does not guarantee future results.

Brokers Play a Significant Role

Choose a broker who understands how the market works. Informed decision sure come in handy, especially when it is well-thought of and are coming from financial experts. Pure guesswork could cause more losses than a profitably-sound one, and with the help of brokers, novice day traders can easily translate potential profits into real money by executing the perfect trade.

Day trading involves a great deal of competition and brokers can help you minimize risks while maximizing profits. Just make sure that you are dealing with a licensed and regulated trading platform to ensure that your profits are secured.

Understand the Platform

Not all trading platforms are ideal for intraday trading. There are several offering trade options that allows traders to effectively engage in day trading. Some may be very easy to understand, while some may be at the other end of the spectrum where it’s just too difficult to initiate a trade.

There are a multitude of contracts positioned on commodity, currency, indices, and stocks. The marketplace is risky and totally unpredictable but, with the help of trading platforms, investors can trade on this with comfort and confidence.

Choose Lower Time Frame Charts

Interactive charts are usually provided by trading platforms where you can create an indicator based on a trade strategy that works for you. There are 15-minute, one hour or 4-hour time frame charts that can give a clear Buy or Sell signal to a trader which can be executed on a trading platform. Candlestick patterns within a 24-hour time frame can also be used.

Be Informed

There are concepts and information that investors need to know to make trading decisions. Different market reports are scheduled for release on different dates that definitely impacts the value of an asset. Most are released at an earlier part of the day that significantly affects market prices. The responsibility to know these pieces of information lies on the shoulders of traders by looking out for these market reports, as well as the fundamentals that could affect production such as in the energy sector and in other commodities.