One of the best ways to succeed in forex trading is to trade a time frame that fits your personality. There are three major time frames categorized as day trading, swing trading and position trading. Now let's take a look at each time frame style to help you decide which is best for you to trade.
Day trading is also known as intraday trading and positions are entered and exited within the same day if not within minutes of entry. Also known as scalping trades are quick with usually smaller size and multiple trades are taken each day.
The advantages of day trading or intraday trading include little risk as each trade generally has a very tight stop loss and also small take profit levels. Scalping takes a lot of intense focus in order to manage each trade and watch the market fluctuations.
There are always downsides to everything and with day trading you can loss money extremely rapidly as well as due to the amount of trades taken intraday traders pay a high level of brokers fees through commissions or the spread. Small mistakes like not respecting the stop loss levels can turn into very steep losses in a short amount of time or even worse blow out an account.
