Currency Day Trading System

DEFINITION of 'Currency Day Trading System'

A set of analyses that the forex day trader uses to determine whether to buy or sell a currency pair at any given time. The day trader's currency trading system is usually made up of a number of currency day trading signals, which are based on technical analysis charting tools or fundamental, news-based events.

BREAKING DOWN 'Currency Day Trading System'

Currency day trading systems can be either manual or automated. A manual system involves a trader sitting at the computer screen, looking for signals and interpreting whether to buy or sell. In an automated trading system, the trader "teaches" the software what signals to look for and how to interpret them. It is thought that automated trading takes the detrimental human element of psychology out of trading.

Both automated and manual day trading systems and signals are available for purchase over the internet. It is important to note that there is no such thing as the "holy grail" of trading systems. If the system was a perfect money maker, the seller would not want to share it.

RELATED TERMS
  1. Forex System Trading

    A method of trading forex that is based on a series of analyses ...
  2. Forex Analysis

    An examination of the changes in the forex market that are used ...
  3. Automated Forex Trading

    A method of trading foreign currencies with a computer program ...
  4. Forex Scalping

    A trading strategy used by forex traders to buy a currency pair ...
  5. Forex Trading Robot

    A computer program based on a set of forex trading signals that ...
  6. Manual Trading

    A trading system that involves human decision-making for entering ...
Related Articles
  1. Trading

    The Pros And Cons Of Automated Trading Systems

    Automated trading systems minimize emotions, allow for faster order entry, lead to greater consistency and resolve pilot-error problems.
  2. Investing

    Trading Systems: What Is A Trading System?

    A trading system is simply a group of specific rules, or parameters, that determine entry and exit points for a given equity. These points, known as signals, are often marked on a chart in real ...
  3. Trading

    Trading Systems Coding

    Automate your trades by translating your strategy into a language your computer can implement in this hands-free approach to investing.
  4. Trading

    Trading Systems Coding: Introduction

    By Justin Kuepper Contact Justin Trading systems are simply sets of rules that traders use to determine their entries and exits from a position. Developing and using trading systems can help ...
  5. Investing

    Trading Systems: Run With The Herd Or Be A Lone Wolf?

    Find out if taking the path less traveled will work in your favor - or against it.
  6. Investing

    Trading Systems: Designing Your System - Part 2

    The preceding section on designing a trading system examines the different types of markets in which to trade, and takes a look at the two basic genres of trading systems: trend-following and ...
  7. ETFs & Mutual Funds

    Trade Forex With A Directional Strategy

    Opening long or short positions to cash in on a trend is one of the simplest ways to trade forex.
  8. Trading

    Creating Automated Trading Systems Using Interactive Brokers: Why Automated Trading

    In fully automated trading, or system trading, traders develop specific rules for trade entries and exits that allow the computer to perform the order entry functions. Trade rules can vary from ...
  9. Financial Advisor

    A Day in the Life of a Day Trader

    Day trading has many advantages and, while we often hear about these perks, it's important to realize that day trading is hard work.
  10. Trading

    Day Traders

    Day traders enter into and exit positions several times per day. The critical feature is that they never hold a position “overnight.”
RELATED FAQS
  1. Is there a buy-and-hold strategy in forex, or is the only way to make money by trading?

    Typically there are different ways to trade in most markets. Traders have been classified into three groups, primarily based ... Read Answer >>
  2. Can I trade a currency when its main market is closed?

    In the forex market, currencies from all over the world can be traded at all times of the day. The forex market is very liquid, ... Read Answer >>
  3. When and why are technical indicators useful?

    Discover what technical indicators are, when they are useful and how their specific design limits their meaningfulness to ... Read Answer >>
  4. Why isn't the EUR/USD currency pair quoted as USD/EUR?

    In a currency pair, the first currency in the pair is called the base currency and the second is called the quote currency. ... Read Answer >>
  5. How does the foreign-exchange market trade 24 hours a day?

    The forex market is the largest financial market in the world, trading around $1.5 trillion each day. Trading in the forex ... Read Answer >>
  6. What are the most common currency pairs traded in the forex market?

    There are many official currencies that are used all over the world, but there only a handful of currencies that are traded ... Read Answer >>
Hot Definitions
  1. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  2. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  3. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  4. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  5. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  6. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
Trading Center