Forex day trading has its advantages and disadvantages. Those day traders whom study intra-day charts with shorter periods of time have some advantages over traders whom only use end of day charts.
Some of the advantages of day trading forex can be summarized as follows;
Disadvantages of forex day trading
The growing trend for day traders is to program their forex trading strategy into MetaTrader, thereby overcoming the inherent disadvantages of day trading. Learn more about automated forex trading here
Who makes the most money? Day traders or Position traders?
good question would have to be, do those whom practice forex day
trading make more money than the traders whom hold positions for at
least a few days?
I have not heard of any research that
answers that question. I would assume (overall) that end of day traders
whom hold positions for between one to four days or longer would be able to make
more that a day trader entering and exiting positions all day long. (Some well known successful day traders are also known to hold positions open for a month or more at a time, looking to capitalize on the longer term cycle).
could it be assumed that position traders would make more money than day traders? Overall, because of the physical and
mental demands / challenges / stress of day trading, which most people would not be able to cope with day in day out. The forex market can oscillate up and
down wildly at times thereby putting enormous pressure on day
traders trying to perform consistently.
the increase of automated trading robots, this will no doubt change? What WD Gann calls the weakest element in trading, "the human element"
has now been overcome.
The most profitable traders into the future are probably going to be those that use a
combination of end of day strategies with their automated robots. That is
these 'end of day traders' whom in the past have traded time frames of
one to four days will now build simple MT4 programs to only trade the
anticipated direction of their one to four day forecast.
Example of intra day chart
The example below
is a 15 minute candle chart which shows a vast array of information that
those forex day trading can take advantage of before the end of day data is available.
Longer term position traders can also benefit from reading intra day price action. Even though they may not actively 'day trade'.
The next example shows the same chart on a 1 hour basis
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