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Are You A Long Term or Short Term Trader?
When new traders enter the forex market, they will need to set their goals and one thing they need to decide is whether they are a long or short term trader. Both of these have different strategies and different results. There are many different approaches to trading forex, so it is important to understand the difference between short and long term trading.
Short term trading will involve completing a trade is as little as a few minutes. The longest these trades last is typically a week. For short term traders, technical analysis is the common strategy since these are perfect for trading in volatile market conditions. Some traders think that short term trading will lower the risks and increase profits. This is not the case. Every forex trade has a risk regardless of the terms of the trade, but short term approaches to minimise these a bit. This form of trading is very popular with new traders since they will not have to stay in the market for a length of time. Short term trading includes Swing Trading and Day Trading.
Long term trading is just what it says, the trade will last for longer periods of time, anywhere from an hour to days. Long term traders will use technical and fundamental strategies and they have more flexibility than short term traders. This form of trading is often too overwhelming for new traders and they will avoid this at all costs. However, most of the successful forex traders will be long term traders, so this is a goal that new traders should set.
There are multiple ling term strategies that can be employed. One is Trend Following, which is the most common. With this, traders will focus on the price action and will not focus on branches. Here, traders will have to have a good grasp of fundamentals.
Long term trading is the most profitable and is a great choice for those that can invest the time and have the amount of knowledge requires. Many new traders are not willing to invest the time needed, so they turn to short term trading, With short term trading, there are risks and traders need to be very picky about the trades they choose since there is the danger of overtrading.
Forex Related Articles
There's a lot that to know when it comes to Forex trading which is why WorldForex.org will continue adding articles and new information to this website on a regular basis. Please visit us and come back to our website from time to time for the latest Forex technicals, charts and other information.
June 20, 2017
When it comes time to start trading Forex online, traders will start by selecting a broker, which will facilitate the trades being conducted. One of the great names in the business is OANDA, a pioneering brokerage that has been operating since the mid 1990s. With this broker, traders will benefit from many tools, useful tutorials and other great perks that can make trading even more exciting and rewarding. The online platform was launched in 2001 and since that time, it has been a preferred platform for traders from all over the world.
The 1 Minute Scalping Strategy
June 15, 2017
Forex traders who have experience in trading will be aware of many different strategies and techniques that can help generate successful trades and profits. One of the common strategies that is used is the 1 minute scalping strategy. In regards to the Forex market, scalping refers to method of trading specific currencies based on technical analysis. Traders will have the goal of making a profit by buying or selling while holding positions for a very limited amount of time and closing the trade to earn small profits. Most trades with the 1 minute strategy will be held for one minute or less.
June 2, 2017
When new traders make the decision to start investing online, they will have to make an important decision to begin, which is selecting a trading platform. A platform is the software that will be used to send information between the trader and their selected broker. This software can offer a large amount of information including charts and quotes and it is also used to enter orders that will be executed. There are different types of platforms, such as local platforms, which are installed on the computer by the trader and web based platforms, that are run with Java. The advantage of a web based platform is that it can be used by any operating system, so it is accessible to more traders.
May 18, 2017
Forex trading has become one of the most popular forms of investing and since it can all be done online with ease, it is simple for traders to access brokers and conduct trades at any time. While the Forex market may seem easy to enter, there are many things that must be considered before trading. There is a risk involved and traders who enter the market with little knowledge or no information on proven strategies will have a difficult time enjoying any success. Here, we discuss some strategies that have been used over the years and continue to provide traders with the tools they need to conduct successful trades and start generating profits.
May 5, 2017
Investing in the Forex market can be quite exciting and there are many options that can generate amazing profits. Unfortunately, many traders enter the market without the knowledge they should have and they often make common mistakes that can lead to unnecessary losses. Making mistakes while trading is part of the learning process, but there are some mistakes that can easily be avoided. For those that are price action traders, there is not as much information available online, so common mistakes are often made because traders cannot find the right information to help them conduct these tyupes of trades. Here, we discuss the top three price action trading mistakes that are made.