Learn Forex: Long Term Trading and Short Term Trading. Which one do you choose?
This article learning forex this time will discuss about trading style, short term or long term. Between long-term trading (long term trading) and short term trading, which one is better? In general, traders prefer to trade daily (short term trading) to take a profit target of just a few pips and trade several times in 1 day. But the problem is trying to be able to consistently 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 leads to a large floating loss.
Actually, if you can consistently do this – that is by determining your daily profit target – then you will be able to control your trading method and your profit, of course. If there is a long trend (long term), but in a short period of time it often makes you feel doubt, is this really reliable. And you will never know when it is time for a trend to reverse direction, this is certainly very risky because it will threaten the profit that you have collected. Therefore very few traders play in the long term, maybe this is one of the causes.
Long term trading requires very complicated knowledge of economic fundamentals. Economic fundamentals take a very long time to explore. Knowledge of economic fundamentals is a step forward, but its application in forex trading is another matter that might confuse you. Long term trading usually requires less action because momentum or a large trend does not occur every day. This style of trading is not suitable for traders who only rely on donations. If you think again, the long term trader actually has more opportunities to make profits than the shor term trader.
But whatever the reason, you can achieve profit both from short term trading and long term trading as long as you have the knowledge base to carry out technical and fundamental analysis. Between the two trading systems, which one is better? Of course this depends very much on your style.What is clear, choose your forex strategy and do it consistently to gain profit in forex trading . Evaluate the trading system that you use and continue to learn forex to improve your trading capabilities.
Congratulations on determining your trading style. 🙂