At the Start of this Millennium, Currency Trading / FX / Forex was been sold to potential newbie traders as one of the best ways to make your millions from just a small capital base and a few hours of work a week. We had all heard about all the money Hedge Fund and Bank Traders had been making during the 80's and 90's and now with the availability of the world wide web and access to the markets - it was time to get involved.
All you had to do was spend a few weeks or months learning how to trade - and of course it looks easy - just follow the news and work out whats happening on the charts and then buy and sell different currency pairs and then bank your profits - etc etc
If you were all ready employed and so only had a few hours a week to trade that would not matter as you could become a positional trader - or a long term trader just taking trades that might last over a week or even a few months etc. However if you had more time available you could become a swing trader or a day trader and instead of only taking a few trades a month - you might take a few a week or even more than one a day - with smaller targets - but with smaller stop sizes etc and so the possibility to use a larger stake size.
For those newbie traders who might have been made redundant or have available capital and lots of time on their hands - well they certainly could become day traders - or even intraday traders and even scalpers - ie taking trades that might only last seconds or a few minutes.
Sounds in theory - absolutely fantastic - lots of options to chose from on a way to make money - you just chose the method that suits you the best
Trouble is - maybe the method you chose might suit your time availability - BUT not your own personality and characteristics etc. Ie are you a patient person - are you very disciplined and can you stick with a plan ? - or are you easily bored - have a short attention span and just don't like waiting ?
In my own particular case - I was going through an early semi retirement based on a sale of my main business interest and then looking at selling my other business interests over the next 3 years. I had money and time on my hands - but I was nearly 50 yrs old when I first invested some money with an American currency trading group based in New York - called Next 24. They did double my $5000 investment under 4 months - so that made me think - I need to look into this. I later found out if I had left my capital with them another 6 months - I would have probably lost most of the gains - showing my gains were not through a great reliable consistent method .
Approx 14 years later - i still don't count myself as a "Master Fx Trader " - ie an expert retail trader in scalping / short term / swing / long term / positional - mainly because I have only really focused on scalping and intraday - purely because I had the time available and like problem solving etc and therefore have found methods to be successful intraday and most importantly consistently profitable
I am going to go into more details with regards to all the different styles of FX trading - but not just yet - there is so much to understand and learn.
Also remember once you have found a method / style that suits you - its still only half the battle - you then need to improve your money management methods - as the basics explained everywhere are just not enough. I also think nobody really goes into the real details of intraday trading - and as they say - the "devil is in the detail" - ie the optimum number of trades per session - why everyday will be different - clues given from the economic calendar etc etc etc
I hope up you have found the first five parts interesting and now from part six onwards we will start to tell it more like it is - in real life - not from a false guru view - or a frustrated loser's bias etc etc - but what is actually all possible
Please feel free to comment and ask any questions etc