Daniel Lindsay - Daniel is a full time private forex trader and blogger, mainly adopting a scalping / day trading strategy.

Following graduation in 2001, Daniel has steadily developed his experience and knowledge in the forex arena, and in the wider financial sphere.

He has a developing interest in the growing role of fringe currencies in the forex market.
Daniel Lindsay
Daniel is a full time private forex trader and blogger, mainly adopting a scalping / day trading strategy. Following graduation in 2001, Daniel has steadily developed his experience and knowledge in the forex arena, and in the wider financial sphere. He has a developing interest in the growing role of fringe currencies in the forex market.
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The Day Trader – What Forex Style Suits You?

The Day Trader’s goal is to generate profits within the course of a day. The total buy in time may range from a half an hour to several hours. The name “Day Trader” refers to the fact that this type of trader will not carry trades over night or without regular monitoring.

The short-term nature of position holding makes day trading prime territory for technical indicators and analysis.

The person who will thrive as a Day Trader will be interested in developing their logical skills. Certain fundamental indicators can assist in predicting the general trend a currency pair is entering, but most trades will be technically driven. Risk is an important factor to consider and the Day Trader should have a solid exit strategy in place.

Famous Day Trader: Martin S. Schwartz (Buzzy)

Listen only to what the market is telling you now. Forget what you thought it was telling you five minutes ago. The sole objective of trading is not to prove you’re right, but to hear the cash register ring.

Martin S. Schwartz

Martin Schwartz is a day trader who made his fortune in the market by trading futures, stocks, and options. After saving approximately $100,000, he began trading on the American Stock Exchange where he cleared $600,000 the first year as an independent investor.

The next year he earned approximately $1.2 million. At the height of his activity, Schwartz revealed he made approximately $70,000 a day with a particularly lucrative day resulting in a net gain of several million.

Average daily gains at the height of activity.

Amount earned in his second year of trading.

The year 1984 brought him national recognition when he won the U.S. Investing Championship as hosted by Stanford University. His day trading style allowed him to clear more than the other 8 contestants combined.

The exceptional part of Martin’s story is the fact that he was one of the forerunners of the day trading movement. He never held onto a position for a very long time. Schwartz followed technical indicators to move in and out of positions far faster than his contemporaries.

The trading knowledge he exhibited was further reaching than just day trading strategies. In 1998, he was quoted as believing that the markets were on the cusp of a major correction. Shortly thereafter came the Ruble Crisis which rippled into many areas of the world financial markets.

Schwartz is a great example of the heights that an aspiring trader can reach with the right motivation and knowledge. The wealth he built came solely from his own hand and efforts.

5 Facts About Day Trading

1) Short Term Focus

Currency day trading strategies are geared to small holding periods, long-term value premised strategies are generally overlooked in favour of short-term market sentiment and order flow based trading.

2) Entry & Exit Signals

Entry and exit signals for the Day Trader can come from any number of approaches. It is not uncommon to see a strategy mixed with technical and fundamental analysis driven by news announcements.

3) No Golden Goose

An automated day trading system can be set up to buy or sell automatically given certain conditions. A note of caution however, automated systems can be quite profitable but profits are far from guaranteed. Anyone trying to make such a promise is likely not pushing a reputable.

4) Liquid Markets

Since day traders frequently turn over positions, they will normally trade in very liquid currencies and markets to minimise what would otherwise become significant spread costs.

5) High Leverage

Day traders need to be extremely disciplined, as they will utilize high leverage levels to maximise profits from the smaller ranges typical of short-term time horizons.

Day Trading On MahiFX

Day trading really has a similar motivation to scalping. It is to capture smaller scale moves over a short holding period. The key difference between a day trader and a scalper is their anticipated holding period and number of trades. A scalper might have a 2 to 10 minute holding period and a day trader more like an hour to a day.

QuickOrder Functionality

The QuickOrder functionality is perfect for Day Trading. You can place orders close to or even inside the spread to profit from the fast movement in prices.

More more information on using our QuickOrder functionality check out our QuickOrder Video

Viewing Recent Price History

The granular charts in the charting tab give you a great visual representation of the recent price history, allowing you to identify when to place and crucially when to cancel your day trade orders.

** Click to enlarge

Trade from the charts

Traders are able to trade directly from the charting area of the platform so there is no need to leave your analysis of the market to place a trade.

** Click to enlarge

Sign up to our demo account now to test out your day trading skills with $100K of demo money!

The content from this blog post can be seen on our interactive infographic What Forex Trading Style Suits You?

Thanks for reading and make sure you don’t miss the next installment of What Forex Trading Style Suits You.

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