October 4, 2013
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Day Trading On the Foreign Exchange Melbourne Market

Foreign Exchange Melbourne Day Trading

In order to trade on the foreign exchange Melbourne market you will require two things: a forex trading platform and a forex trading strategy.  There are various forex trading strategies available to a new trader, with one group being the day trading strategy.  To use this effectively you must be aware of certain rules.  These are not concrete rules but should be viewed as guidelines to day trading success.

1. Using the forex tools

A day trading strategy involves holding onto positions for less than one day.  Due to the fast-pace nature of these trades you will not have adequate time to conduct thorough analysis.  A recommended tool is that of the forex calendar.  This calendar identifies all important news releases of the day and which are relevant to your trades.  You should also take note of the release time as this can affect your trading.  It is recommended that you do not trade for approximately 45 minutes before releases as this can heighten the risk of losses.

2. Relaxation between trades

Forex day trading is potentially one of the most stressful forex trading strategies available.  When conducting short-term trades you will have to wait for the trade you have started to complete.  Instead of becoming anxious it is recommended you remove yourself from the situation and do something unrelated to forex.  You could look at other websites or move away from the computer entirely.  A popular method of passing the time is by entering a forex forum.

Forex forums are growing in popularity as it allows traders to leave their current trading situation yet remain in a ‘forex mode’.  A benefit of this forum is that you can chat with other traders from any location – home, the office or even a Starbucks.

It is important you keep track of the time as you should not be away from your trade for too long.  Forex forums have an ability to ‘drag you in’ and you may spend hours chatting or reviewing old threads.  Remember, this is a break from your trading but you do need to return.

3. Taking a break from the foreign exchange Melbourne market

Due to the heightened stress levels associated with the forex market, it sometimes becomes necessary to take a break.  The forex trading career can be both physically and psychologically taxing so you do need time off to rest.  Day traders should take short breaks every hour but others would recommend a rest every 30 minutes.

During this breaks one should move away from the trading arena completely.  The majority of traders go for walks in order to stretch their muscles and get some fresh air.  Others will step outside for some light and a quick break from sitting.  Whatever you do, it is important that you feel refreshed enough to return to trading on the market.

However, if you are in the middle of a trade you should postpone your break until the trade is completed.  This does not mean you should postpone your breaks indefinitely.  By doing this you will only tire you and begin to trade emotionally.

 

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