One of the trading styles a Forex trader can choose to take is end of the day trading. This style involves getting in front of the Forex charts once a trading day is over and looking for trading opportunities for the next day of trading. In this article, I want to go over the pros and cons of this trading style and help you see whether this is a style you yourself should use.
End of the day trading pros
Some traders simply can't pore over the charts endlessly. They have jobs, school, or other obligations that take place during the trading session in their zone and they simply aren't able to follow the market as it happens. For these kind of traders, end of the day trading is a great option and in some cases almost the only one there is.
What's good about this kind of trading in relation to day trading, for instance, is that it takes up very little of your time. As you're not really following the market, you can only make decisions according to a snapshot of the market. This means that you can go over the entire market in as little as 20-30 minutes each day which is great if you actually have other interests beside Forex, which I hope you do.
From an emotional standpoint, trading can be very demanding. Following the market as it progresses can become very stressful. Trading once a day can prove to be much less anxious as you're not on edge all of the time. If you're the sort of trader who can't stand the pressure very well, end of the day trading can be the style for you.
Naturally, there is something to be said about being in the market all of the time. You're able to follow the market live and adjust to news, updates, and all sorts of short trends. This is why day trading is so popular: you're on top of things all of the time.
In addition, monitoring the market can open your eyes to many more trading chances, some of them for small time profits which you wouldn't have seen had you looked at the market just once a day. This does give you more chances for profits.
Having a life besides Forex is important and end of the day trading certainly gives you that. I happen to think that this trading style is great because you can still make a lot of money without becoming a slave to Forex.