Forex Learning: Long Term Trading and Short Term Trading. Which one do you choose?
Forex learning articles this time will discuss about the style of trading, short term or long term. Between long-term trading and short term trading, which one is better? In general, traders prefer to do daily trading (short term trading) to take profit targets a few pips only and do trading several times in 1 day. But the difficulty is trying to be consistent to achieve the profit you want. Patience to be able to take 20 - 30 pips every day and repeat it continuously, will make you bored. And in the end make a mistake that culminates in large floating loss.
Actually if you can consistently do that - that is, by determining your daily profit targets - then you will be able to control how your trading and your profits of course. If there is a long trend (long term), but in the short term (short term) it often makes you feel doubt, whether this is really reliable. And you will never know when a trend will reverse direction, this is certainly very risky because it will threaten the profit you have collected. Therefore very few traders who play long term, maybe this is one cause.
Long term trading requires a very complex knowledge of economic fundamentals. Fundamnetal economy takes a very long time to dig it. Knowledge of economic fundamentals is a step forward, but applying it in forex trading is another issue that might confuse you. Long term trading usually requires less action because the momentum or big trend does not happen every day. This kind of trading style is not suitable for traders who rely solely on the course. If you think back, long term traders actually have more chance to make profit than shor term trader.
But whatever the reason, you can achieve profit both from short term trading and long term trading provided you have a basic knowledge to perform technical and fundamental analysis. Between the two trading systems, which one is better? Surely this is very dependent on your own style. What is clear, choose your forex strategy and do consistently to achieve profit in forex trading. Evaluate the trading system you use and keep learning forex to improve your trading ability.
Congratulations to determine your trading style. :)
The above info can actually add several million rupiah in your asset list. Do not know how? Yup .. One of them through forex trading .. learn here, 100% free.
Forex learning articles this time will discuss about the style of trading, short term or long term. Between long-term trading and short term trading, which one is better? In general, traders prefer to do daily trading (short term trading) to take profit targets a few pips only and do trading several times in 1 day. But the difficulty is trying to be consistent to achieve the profit you want. Patience to be able to take 20 - 30 pips every day and repeat it continuously, will make you bored. And in the end make a mistake that culminates in large floating loss.
Actually if you can consistently do that - that is, by determining your daily profit targets - then you will be able to control how your trading and your profits of course. If there is a long trend (long term), but in the short term (short term) it often makes you feel doubt, whether this is really reliable. And you will never know when a trend will reverse direction, this is certainly very risky because it will threaten the profit you have collected. Therefore very few traders who play long term, maybe this is one cause.
Long term trading requires a very complex knowledge of economic fundamentals. Fundamnetal economy takes a very long time to dig it. Knowledge of economic fundamentals is a step forward, but applying it in forex trading is another issue that might confuse you. Long term trading usually requires less action because the momentum or big trend does not happen every day. This kind of trading style is not suitable for traders who rely solely on the course. If you think back, long term traders actually have more chance to make profit than shor term trader.
But whatever the reason, you can achieve profit both from short term trading and long term trading provided you have a basic knowledge to perform technical and fundamental analysis. Between the two trading systems, which one is better? Surely this is very dependent on your own style. What is clear, choose your forex strategy and do consistently to achieve profit in forex trading. Evaluate the trading system you use and keep learning forex to improve your trading ability.
Congratulations to determine your trading style. :)
The above info can actually add several million rupiah in your asset list. Do not know how? Yup .. One of them through forex trading .. learn here, 100% free.
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