The wonderful thing about Forex trading over trading so many other markets is that traders can make good money and only trade at the end of the day or the end of the New York session. This allows traders to keep their job and trade successfully at the same time.
A trader himself can formulate his own strategies. The effectiveness of a strategy is based on the needs, objectives and preferences which are considered in the stage of planning. This stage is vital in the case that you are thinking of how to get in to the end smoothly and victoriously. You must look in all angles and get ready for any circumstances that you may face. This must be given much focus by the trader to ensure that he will bring home the bacon.
As Forex traders we can make money buying or selling. We can make money when the markets are moving up, and when the markets are moving down. As currency traders, all we need is movement, as movement equals potential profit. As a currency trader, we like movement in any direction.
An initial stop is your predefined point on when you will be exiting a trade. To put it simply, while it may not sound good to you, it is knowing and admitting that are losing heavily in the trade and so it makes sense to bail out. Otherwise you will continuously lose money. This is a part of a good trade exit that you should have in place from the very beginning.
Simply holding on to the trade until it reaches expiration results in a $1,000 deduction from the profits. The call option expires worthless, leaving $3,000 in profits. The sold put has to reach $4.25 before it can be considered profitable (determined by subtracting the strike price from the premium collected), and even if it gets that low, the short futures position can end up covering your losses. A simple profit of $3,000 can be achieved if the how to day trade for a living is held on to with little fanfare.
People can keep their jobs and still trade. Obviously if traders are trading the daily timeframes they can place trades and then hop of to work or come in from work and check the market depending on which country and time zone they live.
Just keep in mind that having a trade exit is a necessity for every trader. You should also understand that it is normal to every now and then for you to experience some losses. What sets good traders from bad traders is the capability to know when it is time to pull the stops.