Forex Day Trading Can Bring In a Big Income Potential

With the price of gold is increasing every day, many people are looking at futures day trading as an opportunity to diversify their investments. Gold is a tangible asset that, when invested in the right way, offers very high returns. The question becomes how can someone manage such a high risk without losing their mind? There is no real secret, but there is a series of skills that will help you avoid financial ruin in the futures market.

First of all, if you have a desire for day trading, there is absolutely no need to use a futures brokerage service or a futures day trading account. Day trading is just a term that investors use to describe the method of buying and selling contracts on futures exchanges. Therefore, using a modest $15,000 account, and with a good futures day trading plan, you could earn: $3,500 – $7000/month or more. That’s a pretty good return on your investment, isn’t it? So, what’s the secret?

You have to be able to spot good opportunities, know when and where they are likely to occur, be able to act fast, before other traders jump on the bandwagon, then follow through with your plan. Of course, not every plan will work every single time, but if you can spot opportunities with both accuracy and speed, day trading can be very profitable. The following futures investing styles are the most common and should allow you to do just that:

The Long Term Trader. As the name implies, this futures trader looks to see a lot of money to come off the market in a relatively short amount of time. They usually buy during the ‘new’ session, as the futures prices are not yet adjusted for the opening of the market for the day. Then, they let the price move along until they make a strong profit. If you can find a great long-term low point, you’ll almost always make money in this manner.

The Swing Trader. This type of trader does most of their trades during the ‘swing’ periods of the market, which occur several times of the day. For example, during the morning, the prices are low, so they trade lower. When they recover later in the day, they can profit, as the prices are high.

The Day Trader. Since the prices are not tied to anything, day traders don’t need to hold positions overnight. Instead, they make day trading transactions as close to the end of the day as possible, to take advantage of any rise or fall in the market prices. This leverage helps them make day trading trades with much money from a much smaller amount of capital.

Scalp scalping is another form of trading that many day traders use. With this strategy, traders make one huge trade, then exit the market within the same day. However, they must be aware of market conditions beforehand, since the profit and loss outcome can change dramatically. Even worse, if they get into an unfavorable position and they exit before the market conditions are able to turn around.

You should know that although day trading can earn you a lot of money, it also has a very big risk factor. To help minimize your risk, it’s a good idea to stick with one strategy, or to at least do your trading only when you have a strong feeling about it. And to help you find your profit potential, it’s also a good idea to monitor the behavior of the market during your regular activities. By doing so, you will quickly discover if you’re making enough money to take on more risks, or if your current trading routine isn’t producing any income potential.

Opinion writer on 7trade7