General Question

unodos's avatar

What is a Currency Day Trader? What do they do?

Asked by unodos (132points) October 8th, 2009

Anyone here, who’s a currency day trader? or knows someone who is one? can you explain what you do in a normal day?

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5 Answers

IchtheosaurusRex's avatar

A day trader is somebody who buys and sells investments by following daily trends in the financial markets. For example, one might buy 100 shares of a stock at the opening bell, then sell it a few hours later if it goes up. A day trader in the currency market watches the exchange rates, and will, for example, buy Euros if he expects the value of the Euro to rise against the dollar.

Day trading is just another form of gambling. Most day traders also use margin accounts to buy more stuff than they can otherwise afford, and most of them end up losing their shirts. Currencies and commodities are very risky things to trade in; the only people who end up making a lot of money this way are the brokers who collect commissions from the constant buying and selling. Day traders also contribute to market volatility and are not seen as a positive influence on the markets as a whole.

Don’t do it. If you want to invest money, buy instruments that you intend to hold for a while, with the expectation that economic growth will increase their value over time.

MuffinMonarch's avatar

The above explanation as to what day traders and currency traders is true. One thing I would like to say is that traders can make a very large sum of money, but most of the ones who make money work for large Financial Institutions that fit the bill if they lose money. DO NOT do it with your own money. Simply buy stocks in companies that have strong economics and that have years of good performance and sit on those stocks.

trailsillustrated's avatar

you buy and sell currency based on the strategy that you have learned. It takes a long time to learn how to do it, you have to have a plan, and know how to study and analyse candlestick charts, read financial news, and have alot of time on your hands to do all this. my day is this: I know when each market around the world opens, I open up a monthly chart, weekly chart, daily chart, 4hour chart- then I draw strength and resistance lines, check the calender for any news about the pair I’m working on, then I check the 15 min chart, make a target, open the trade, and manage it with a 4hour, 15 minute chart, and a 1 minute chart. I do it with my own money, you have to be really really careful. Google stuff about it if you want to learn, don’t use robots, don’t pay to learn you can find all you want to know on the internet. It’s very time intensive, at least for me.

DrMC's avatar

financial suicide ; )

PinkLisa's avatar

The buying or selling of a currency within the same calendar day is known as currency day trading. In this case, all trades are completed in the same day and nothing is held overnight. The United States passed laws six years ago that enabled small investors and common men to participate in currency day trading; previously, only large banks and financial institutions and millionaires were engaged in the practice.

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