What you need to know about forex day trading
When you day trade, the focus is on factors that can affect intra-day market behaviour — unlike position trading or investing, where the focus is on longer-term market movements. Some of the key factors to consider before you start to day trade forex are:
Liquidity — the liquidity of a market is how easily and quickly positions can be entered and exited. High liquidity is extremely important for day traders, as they often execute multiple trades throughout the day.
Volatility — the volatility of an asset, or how rapidly the price moves, is an important consideration for day traders. If high volatility is expected during the day, the movements could create a lot of opportunities for short-term profits.
Trading volume — an asset’s trading volume is a measure of how many times it’s bought or sold during a certain period. A high trading volume shows there’s a lot of interest and is useful for identifying entry and exit points.
