Forex market lessons from 3 day traders

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Updated: 28 August 2020

The concept of day trading encompasses a group of traders who work from their homes as their primary or secondary source of income. These traders usually work on short-term trades and daily fluctuations in the markets to make money. This form of trading has become simple enough for anyone with the right technology setup, a debit card, and a small sum of capital to pursue. Many day traders are involved in Forex trading. They can be successful, but they also risk large losses. Here are three accounts from day traders who have experienced both losses and profits.

Gambling with savings

Rene Muccio of South London retired from running an antique business to become a trader. He uses his life savings as capital to trade on the Forex market. He trades currencies like the US dollar, pound, euro and yen from his bedroom while simultaneously studying charts and indicators. At the time, his biggest profit was a measly £220, while his losses were up to £2,000 at a time.

Muccio admits that his spontaneous decision to pursue day trading was not the wisest one, but he continues despite losses because he notices improvements in his skills and understanding of the market. With experience, he has learned how to better analyze charts and understand the effects of various movements on his trades. Although he enjoys the process, many professionals would view this as a form of gambling as novice day traders act impulsively, spend much of their savings, and don’t usually note significant success. More traders lose money this way than earn profits.

Risking losses to make gains

One day trader has been through worse experiences but has come out on top. Charlie Burton might have once lost £250,000 during his first year of trading, but with more than 17 years of experience in the industry, he has now learned how to manage his funds better. He places his daily targets at roughly £500-1,000, even though he once gained £7,000 off one trade.

Burton acknowledges that most traders will not be successful in their first few years, but experience makes all the difference. He suggests traders be prepared for hard knocks and begin as part-time traders before deciding to trade full time with all their capital. Even with thorough research, trading strategies and analysis, trading is one of the most challenging careers in the world and should not be underestimated.

Part-time day trading

Jackie Mitchell is a trader who has followed a method of part-time trading. She executes trades in the mornings and runs a laundromat in the afternoons in order to remain secure and still work toward moderate profits. She made a mistake that many others make at first: she attended a seminar, thought the process was simple and attempted it the next day. Like the above-mentioned traders, Mitchell agrees that new traders can expect to lose money at first. Even so, trading comes with many advantages once you have learned the ways of the industry, such as mobility and convenience. After many years of practice, she is finally able to say she earns profits that help her support her daily life and have enough to spare for holidays.

No trader can predict the markets, but the best way to improve trades is through practice and experience. These three-day traders, like millions of others, have experienced harsh losses, but with persistence and dedication, they have been able to turn this practice into a career. The keys to profitable long-term day trading are to avoid becoming overly confident, stay cautious during periods of short-term gains, and never stop learning.

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