The day trading as it is

Forex day trading is the day-course trades making. The idea is to win the short-term profits. The trading day could be prolonged outside the usual time per. If the trades are carried beyond the day of initiation, the trade is extending to the position trades.

Trader is getting the maximum time length for carrying the position with the execution day trade at the opening price and ending at the close. To get high profits you should leave the trade for as long time period as possible. In this case the opportunity for profits will increase. But don`t forget about the risks – because increasing maintenance time may bring to higher losses.

Previous statements involve that through trade duration the position is going to be profitable. If the trade is profitable and the day trader decides to close out the trade prior to the close of the day, the day trader eliminates any possibility of continued profitability by eliminating any market positions.

The forex day trader`s potential for additional profits would have been reduced to zero probability by the act of closing out the trade. At this point, open trade profits or losses become realized gains or losses.

The act of allowing the profitable trade to stay open for as long as possible is merely a mechanical way to manage the position. It requires no additional thought processes. As this is the most mechanical way to increase the opportunities for profits, it does not give a hint of what is critical to profitability: the range of prices traveled during the period the markets are open from the opening trade to the closing trade, that is, the opening and the closing price, as differentiated from the opening of the day trade and its closing, and the range of prices, from high to low. In terms of prices covered, the range between high and low prices is a subset of prices through which the market has traveled from opening to closing.

As you can determine, the greater the trading range for the particular markets, the greater is the potential for absolute dollar amount of profits. Note however that simply having the potential for profits doesn`t mean that the day trader will make the profits. Offering the right tools to an inexperienced journeyman carpenter will not create beautiful works of cabinetry, yet on a more mundane level, the right tools are necessary. Successful forex day trading thus requires, among many other conditions, a wide trading range.