Day trade's definition is to complete a trade in a day. Lately, if you have position more than 30 minutes, it is said to be not a trade no more. But basically, it is not a mistake to think "one day buying and selling trade".

As an exchange market is working for 24 hours a day, It is differently from a stock market or futures market where is traded from the morning to the afternoon. So it can be said that everyone can trade in the exchange market. Well, let's see merits and demerits of exchange rate.

First, about the merit, as efficiency of funds operations is good, your funds can increase more and more if a winning percentage is not bad. And, it is not swung around big news. An exchange rate is swung around many kinds of news in the world. Day trade finishing in a day minimizes this risk. Additionally, there is no worry about stress holding position. You do not have to worry like "what will my condition happen tomorrow in the exchange market? I am so worried about that!!"

Second, about the demerit, as exchange market doses not have big change in a day, an amount you can gain is not much. And good thing of efficiency of funds operations works on demerit way as well. If losing percentage is higher than winning percentage, your funds do not stop decreasing.

While day trade can reduce various risks, it may reduce your funds without accurate trading skills.

Doing day trade, you may be supposed to trade many times in a day. If so, you have to pay a charge per a trade. If you trade 10 times per a day, even a charge is just 500 yen per a single. You need to pay 10.000 yen (1000 yen times 10 equal 10.000 yen) as only charge for a day. Everyone think it is such a waste!!

Additionally, as FX is possible to trade for low funds, in the case of a person whose funds is very little, the charge is more disadvantageous for them. Even if he/she wins, it would be several thousand yen. End if the both-way charge is taken, his/her profits is almost nothing.

And so, there is complete free charge account for FX day trade. If you use this account and trade, you do not need to pay charge no longer!! A person who has paid the charge so far may think it ridiculous. The trader adopting the account is central investment, Himawari groups, and Margin FX.

If the charge becomes free, you do not have to do complicated calculation requiring when you file a final tax return. Even if you do not trade now, or will do in the future, you had better make complete free charge account. Basically, there is no managing expense and maintenance expense.

In FX day trade, it is very important to make sure big economic concept. For example, at a market in 2005, the economic concept is continuation of rising of interest rates in US and renewal of maximum amount of oil. As interest rates in US increased and interest rates in Japan decreased, a gap between them became bigger and bigger. So a condition of cheap yen rate and high dollar rate was kept.

And, renewal of maximum amount of oil is thought to pressure the Japanese economy. So, that can be said to help tendency of cheap yen rate.

In 2006, release of zero interest rate in Japan and rising of interest rate were big concept. The gap of interest rates between US and Japan became smaller. As a result, the interest rate in Japan is even lower than US. So, the trend that cheap yen rate and high dollar rate will probably come back. But there was a certain trend of high yen and cheap dollar for a period of time.

In 2006 except that, a breaking of a housing market in US was whispered. If a housing bubble is broken, it makes bad influence and leads to a close of rising of interest rate. It could be difficult to go both ways. At that time, there was a trend of cheap yen rate and high dollar rate for a period of time.

As just described, a big economic concept at that time decide rough trend in exchange markets. Find out current economic concept and see how it can move the exchange markets, your winning percentage of day trade will be higher.

An exchange rate is said to be a range trading market. Basically, it moves back and forth in the same range. It dose not move much like a stock market that may advance furiously.

This range trading market can be applied to a movement in a day. So, dealers utilize the range trading market in FX day trade.

For example, one day, a movement of an exchange rate is near 117 yen and gets a bottom 2~3 times. If it is about reach to 117 yen, enter as soon as possible. Percentage of increasing becomes high. And if it is about to reach to 119 yen and gets a top for 2~3 times. Just sell as soon as possible. As described, the trading approach that you buy at a low rate and sell at a high rate is "contrarian method". You can make profits much as long as a range trading market continues.

When you utilize "contrarian method", you had better check not only the day chart you trade, but also daily chart. Checking daily chart, you are able to know rough trend of a short time.

If the short time trend is a range trading market, a movement of the day may be the range trading market as well. Of course, a range trading market may break. In that case, it is safe way to leave position sooner. Perceived notion like "it can be OK, just wait for a while" is very dangerous!!!

What I meant is to make sure not only the day chart, but also rough trend of a short time. If you are lazy to do that, you will not be able to gain profits much.

In FX day trade whose buying and selling numbers are many, you need to figure out the points of stop loss. The points of stop loss are said to be "escape point". It means you need to line when to sell. If you do not line that point, you are thrown into a panic and get damaging very much when an exchange rate falls precipitously.

The point of stop loss should not be decided at ease. It is ideal to decide it after you analysis a chart. If you make a point of day trade, you had better analysis the day chart and see top and bottom of the chart.

When several bottoms are made, you had better set a stop loss point in a position under running the bottoms. An exchange rate basically repeats in a range. Once the range breaks down, nobody knows how it moves. It is safe way to set a stop loss point in a poison out of the range.

However, stop loss is always a fight against your inner mind. As we are human being, we are apt to think in a good way like "it will come good if I wait for a while". This is a kind of remarkable tendency for a beginner. But, experienced dealers are apt to think like that as well.

It is probably fair to say that "stop loss" is a fight against yourself. When you can defeat it, you will be a greater dealer than before.