Which one is better ? Trading in Long Term or Short Term?
This time will discuss the forex trading style, short term or long term. Between long-term forex trading and short-term forex trading, which one is better?
In general, forex traders prefer trading on a daily basis (short term trading). This is to take a profit target of just a few pips and trade several times in 1 day. But the difficulty is trying to be able to continue to get the profit you want. Patience to be able to take 20-30 pips every day and repeat it continuously. This will certainly make you bored. And in the end it made a mistake which led to a large floating loss.
Actually, if you can always do that. That is by way of determining your daily target profit. Then you will be able to control your trading methods and your profits, of course. If there is a long trend, but in a short timeframe. This indeed often makes you feel doubtful, is this really reliable. And you will never know when the time a trend will reverse. This is certainly very risky because it will threaten the profits that you have collected. Because it’s very few forex traders who trade with the long term and that’s one of the causes.
Long term trading
Long-term Forex trading requires a very complex knowledge of economic fundamentals. Economic fundamentals require a very long time to dig up.
Knowledge of economic fundamentals is one step forward. But applying it in forex trading is another problem that might make you confused. Long term trading usually requires less action. That’s because good opportunities or big trends don’t happen every day. This style of trading is not suitable for forex traders who only rely on profitability. If you think again, a long term trader actually has more chance to make a profit than a shor term trader.
But whatever the reason, you can get profits from both short term trading and long term trading. As long as you have the knowledge base to do technical and fundamental analysis.
Which is better?
Between the two forex trading systems, which one is better? Of course this is very dependent on the style of each of you. What is clear, choose your forex strategy and do it regularly. Of course to achieve continuous profit in forex trading. Evaluate the forex trading system that you use and continue to study forex to improve your trading skills.