Some people prefer to trade on a shorter amount of time. This is called day trading because the traders that use this method only hold transaction for a day only. They don’t like to hold the position for days because they usually want to generate profit as much as they can. This cannot be done recklessly, and a beginner forex learner shouldn’t really focus on this idea.
If you day-trade, you are not investing
Investing means you are putting your money on something and hope that it would have a better value after quite a while. Day trading is purely for profit, not the investment itself. The risks that come with this are also bigger because of their trading frequency and the fast moving price. A good risk management will be good for this matter.
If you day-trade, you are not gambling
But, if some people might think that day-trading is gambling, that is not true as well. What makes trading and gambling different is the plan that comes with it. If you are entering the forex market with no knowledge, no experience or no plan and risk management, then that is considered gambling. Gambling is when you put them in hope of luck and you have no control over them.
Day trading still requires a lot of analysis, so if you just learned about forex you should never go live without any plan in hand. Your mindset plays a big role in this, because if you think that forex trading is gambling you will treat the market as an entertainment area instead of a place for business making. Consider this as a business that you need to take seriously.
Your psychology matters
One of the most important things that you need to take care of when learning forex is your psychology. Forex market and trading will really take a toll on your mental health as it plays you with the pricing movements. Not only that, you can also benefit from analyzing the psychology of the other traders. This is to understand their own strategies.
Emotional is indeed one of the targets of the trader world. Don’t make any decision that you are uncomfortable with, because you maybe are not in control of the market, but you are in control of yourself. Your response will affect the timing that you take as well, and we all know how much timing is worth in the forex market.
If you are unsure about your decision, then limit your trading volume so you can focus on each of the transactions that you have made. Don’t push yourself to the point that you are frustrated, because it makes you unable to think clearly even more. The forex market is high in risk, but being unsure and entering the market anyway will heighten the risks as well.
One of the things that you should learn is to manage yourself. Prepare yourself for the worst because anything can happen. If you feel like you are losing, perhaps you don’t get any constant profit, do move on fast and rebuild yourself in the market. This feeling can be dangerous and make you do impulsive trading decision.
Always enjoy the failures that you have faced, because that gives you a valuable lesson that can be avoided in the future. If not, then you are going to be filled with regrets that might affect your decision making again. This is why controlling your psychology cannot be overlooked, because it might lead you into some fails that is even more expensive. Enjoy the pain and move on like a businessman.