| Day trading and swing trading foreign exchange | | | | account plus the prices quoted are real time. |
| (forex), contracts for difference (CFDs), individual | | | | You can also trade when you want. Of course you |
| stocks or stock market indices, for many people is | | | | need review your trading positions and the markets |
| an attractive proposition. That is why there are | | | | throughout the day but you do not necessarily need |
| numerous adverts for systems, seminars or training | | | | to be sat looking at a computer screen every minute |
| courses that promise earnings of thousands of dollars | | | | of the day. The time spent watching the markets will |
| a day. Not only that, many claim that this can be | | | | depend on the system(s) you employ and the |
| done with a relatively small amount of capital and | | | | frequency of trading. Scalping or intraday trades will |
| limited risk. If you ignore these adverts of | | | | require regular review whilst swing trading, where |
| guaranteed riches, do your own research and | | | | you may place a trade every two or three days will |
| develop your own trading system, you to could | | | | require much less time sat at a computer. |
| benefit from the advantages of day trading and | | | | At the very least, you can be more flexible with the |
| swing trading. | | | | hours you work as much of the research can be |
| First of all, with day trading you are your own boss. | | | | done at a time to suit you. Although it is important to |
| There is no need to report to work and take orders | | | | be aware of key times during the trading day. For |
| from anyone else all for the benefit of regular salary. | | | | example, when a foreign market opens as |
| Of course, that does not mean you should not treat | | | | movements there may impact the local market you |
| it as a business, nor neglect the discipline required to | | | | are trading. Also the timing of any key |
| be successful at day trading. It is still vital to put the | | | | announcements that day, be they of a |
| required time and effort in to planning, executing and | | | | macro-economic or company specific nature. |
| reviewing every trade and decision in order that you | | | | As mentioned, the initial investment is relatively small. |
| can refine and improve your system as time goes by. | | | | A computer, a broadband connection, a trading |
| Being your own boss allows you to work where you | | | | account and possibly a subscription to a level 2 |
| want. You can choose to work from home, set up | | | | trading platform is all you need. |
| your own office or indeed work whilst travelling or on | | | | The level of funds required to trade is obviously a |
| holiday. Working from home eliminates travelling costs | | | | different story and a decent pot to get going is |
| meaning you don't need to earn the same amount as | | | | required. Many suggest a minimum pot of $50,000 is |
| if you were going out to work. This is a great benefit | | | | required, whilst others think it is possible to make |
| but requires more discipline than if you set up an | | | | enough gains to earn a living with a lower capital |
| office elsewhere as tt is easier to get distracted | | | | amount. What this is will depend on individual |
| elsewhere. | | | | circumstances, whether you trade part-time or |
| Travelling costs aside, set up costs are relatively small | | | | full-time and ultimately the success of your system. |
| and pretty much all you need is an online trading | | | | Remember to ignore the promises of riches, develop |
| account and internet access to be able to conduct | | | | and back test your own trading systems. Trade your |
| business. If you are trading full time then it probably | | | | system and refine as required. This way you too can |
| better to sign up for level 2 functionality which | | | | start to benefit from the advantages of being a day |
| provides greater levels of analysis than an ordinary | | | | trader. |