It’s another short-term style. The trader who practices day trading usually does one deal a day, closing it when the day closes.
The main purpose of a day trading trader is to generate profits in the course of a day. They do not like to keep their positions open at night.
This style of trading best fits with FX traders who have plenty of time every day to analyze the market situation and adjust their position according to the intra-day price fluctuations. If scalping is too fast for you, and swing trading is too slow, you should practice day trading.
The day trading trader must have strong analytical skills, actively use various indicators and other technical tools. In addition, he (a) must have a well-established background in economics to recognize the fundamental trade signs. He must also have a powerful exit strategy to close his open positions with the highest returns at the end of the day.
As day trading traders often lock their positions, they usually trade in net currencies in order to limit spread costs.
Example of a Merchant
A good example of day trader trader is Martin S. Schwartz, the man whose nerves of steel and great intellect earned him a great fortune and the well-deserved name of Pit Bull. He received national attention when he won the US Investment Championship in 1984. His day trading style was invincible at the time. He has never held an open position for a long period of time. To place its bets, it tracked technical indicators and received commercial signals from economic reports and other fundamental analysis tools.
When you talk about fundamental news and data, most marketers just focus on numbers and then wonder why markets are not behaving according to the news. Marty Schwartz believed that a negotiation should be based not on the number printed in the economic news headline, but rather on the reaction of market participants that appears after the publication of the data. Marty advised traders to forget their assumptions, thoughts and listen to what the market is saying, because the purpose of trading is not to confirm their assumptions, but to make money.
Our day trader trader often used technical indicators to predict the direction of the price. Its all-time favorite analytical tool is the experimental 10-period moving average (EMA). This technical tool helped Marty to distinguish bullish (optimistic) and bearish (pessimistic) scenarios in short-term trading.