Day forex trading is much different than trades made on other markets because the forex markets are markets of currency. When day forex trading, a trader is purchasing one currency against another but nothing physical is purchased.
Day trading involves the purchase of a share or stock from a company. This involves something physical and traders may even print a stock certificate from the purchase. This ownership provides the trader with certain rights when it comes to the management of the company.
A trader participating in day forex trading doesn’t own any currency from the purchase. Effectively though what a trader is doing when purchasing currency is purchasing a share of that country’s economy. No certificate is given in day forex trading.
Another way day forex trading is different is that a trader purchases one currency against another meaning the trader believes one currency is stronger than the other. The purchase of a share in day trading doesn’t involve any comparison of one share with another. It simply involves the purchase of a share at a particular price with the anticipation the price will increase.
This difference in day forex trading tends to shy traders away from trading the forex markets, but with a little study these markets may be traded successfully.