When you are trading in Forex, you will have heard that traders are trading in long-term strategy and in short-term strategy. When you are trading in short-term strategy, you get some benefits that you do not get in long-term strategy. This article is going to tell you if it is good for traders to trade the Forex market with short-term strategy. You will know by the end of the article whether the short-term or long-term strategy is best.
If you truly want to develop your career in the field of Forex trading industry then you need to learn from the senior traders in the United Kingdom. Majority of them are trading the higher time frame due to its extreme level of reliability. It’s true that if you trade the higher time frame then you will have to wait for long period of time for a single trade setup but at the end of the day you will patience will have its reward. However, if you want to develop yourself as scalper in the Forex market then you need to learn more than the position trader. In fact, short-term trading is nothing but the quick profit taking opportunity created by the long-term trader.
Short term strategy is riskyWe want to start this article by telling that short-term strategy is very risky. When you are trading in the short term in Forex, say that you are a day trader and you do not keep your trades open in the next day, you will have more risks than the other traders. If you are trading in short-term strategy, you will see that you are taking most of the market volatility in your trades. It may sound to you that you can be rich in a short time if you are using the strategy that gives money in little, time, it also means that you are having more risks than the other traders who can keep their trades open on the market.
Long-term strategy is the bestThe best way to trade in Forex is by using long-term strategy. When you are using long-term strategy in Forex, you will see that you are going to have more than your money you have thought. When traders are keeping their trades open, they get two benefits in the
CFD trading industry. You can have more time for your trade which means the volatility can be erased when you close your trade. You also get more time to make more profit in Forex. If the trend is going in your favor and you are a long-term trader, you do not need to close your trades in Forex. This industry can give you more money only if you this market time. The traders lose in this market because they want to close their trade to make money. If you are closing your trades in the market, you can also miss the chance to make money if the trend is going in your favor. Long-term traders enjoy that benefits and they can also withstand the market volatility better than any other traders in this market.
Before you pursue your trading career as a long-term trader you need to learn the technical analysis first. Your technical analysis skills will help you to determine how to trade this market even during the extreme level of volatility. But never think that you will be able to make profit consistently based on technical analysis skill. Fundamental analysis is often considered to the most vital ingredient to gauze the strength of the market trend. So if you don’t learn this then don’t expect to become a successful trader.
As a full-time trader, you should trade this market with a reputed broker like Saxo. Always follow strict discipline and aim for high-risk reward trades. Never get frustrated with few losing trades rather stick to your trading plan.
