Day Trading is a style of trading on an instrument that uses a short time span or no more than one day. In short, the time span of this type of transaction makes the profit target not too large. However, the number of transactions made per month is quite a lot. Of course, the chances of losing are also high. Then, what is the difference between day trading forex and day trading stocks? To see this consider the following explanation:
Day trading Stocks
Day Trading shares is an activity in which traders make the purchase and sale of shares on the same day. This makes traders have to monitor price movements continuously.
Traders with Day Trading have a goal to gain or profit from buying and selling activities every day. But in fact, instead of making a profit, traders often spend their capital from Day Trading activities.
For inexperienced traders. Here are the advantages and disadvantages of using a day trading strategy on stocks.
Many stock watchers do not recommend this trading style. Because, Day Trading is considered to have a greater risk than the profit opportunity. This trading style is heavily influenced by price fluctuations, which makes it unsuitable for stock instruments.
Day Trading Forex
Day Trading Forex is the activity of a trader who opens and closes positions on the same day. Daily forex traders tend to open positions based on technical analysis and use time frames smallsuch as 15 minutes to 1 hour.
In forex transactions, Day Trading is more suitable for professional or experienced traders and is not recommended for novice traders because it often causes losses.
Finally, Day Trading is like two knives, which can be used as a daily profit seeking strategy and can also be one of the causes of the loss of all trader capital.
