Forex Trading: In today’s segment, we want to focus on the two key factors for forex traders and the importance of each.

First, forex traders do not have to day trade the forex markets to be successful. This likely goes against conventional wisdom – however, the truth is that most traders who dive into day trading fail and frequently wipe out their trading accounts.

This is because of the rigors of day trading — forex traders must monitor the markets to the minute — they have to trade shorter time frame bars, which means they need to be able to make instant decisions and be always available to complete a trade action. Furthermore, Day traders typically have to hunt for smaller pip moves, make more trades and are constantly at risk of being stopped out due to smaller volatility spreads.

For those reasons, you should not day trade – nor should day trading be the only way to be successful trading forex.

In fact, to the opposite end, we believe forex traders can be quite successful trading forex on an end of day basis, and focus on capturing long trends in the market that can yield greater profit potential than a day trader can capture.

So when considering a forex trading method, look for a method that has the flexibility to be used on an end of day basis and one that aims to grab larger profit potential rather than methods that require the forex trader to make split second decisions for very small potential gains (or even no gain at all).