Long-term Trading Vs. Short-term Trading



There are several ways to operate in the currency market. One of the choices you can make in this regard is to opt for long-term trading or short-term trading. What are the differences between these two trading styles and what is right for you?

If you choose to trade in the long-term period you can spend less time at the computer. In fact you can open only 1 or 2 transactions a week, sometimes even less. The timeframe to trade based on the long term is to 4 hours. This means that you can watch the graph only once every 4 hours.

So you can open a position, set a stop loss and a take profit; then you walk away from your computer easily. After four hours you can go back to see if you need to make changes or if the position has been closed. Depending on how you moved, you may also have already received a fair return.

If you have never done long-term trading, you might try openin a demo account to be used for this purpose. All forex brokers should also give us the opportunity to open a demo account. It is important to learn to trade. For starters it is important to begin to practice, and for those already experienced can be equally important to test new trading strategies. It helps giving us the opportunity to test strategies without running the risk of losing real money. Choosing a good forex broker is crucial to success in this world. Better take a few more days to choose calmly and with knowledge of the facts, not doing things in a hasty fashion and regret later.

Remember that when you do trading, the important thing to succeed in the long run is to have the patience to wait for the right occasion. Do not be hasty and try to open positions even if the market indicates that there is not a good time, otherwise you can lose money.

But in the short-term trading, following graphs such as every 5 or 15 minutes, then you must necessarily have the time to stand in front of the computer to watch the charts steadily trying to find the right time to enter. The opportunities come and go, do not last long and have a low income level, so you have to open more positions to make a good monthly income.

Add Your Picture

About the Author

Article Written By: WolfingerStain








Rating: 0.0



Comments

No comments posted.

Add Comment

You do not have permission to comment. If you log in, you may be able to comment.

You Can Link Directly to "Long-term Trading Vs. Short-term Trading" by using the url:
http://www.allbestarticles.com//finance/forex/long-term-trading-vs.-short-term-trading.html

This Article Has Been Published on Wed, 14 Dec 2011 and Read 4025 Times


Find The Best Articles at www.allbestarticles.com



Related information on Forex

Forex Trading: When it is not advisable to trade
Forex Trading: 4 Stop Loss Techniques
Forex Trading: Forex Indicators for Beginners
Forex Trading: Creating a strategy
Online Trading: How to do trading with minimum risk
Forex Trading: Spread, Trend and Leverage
Forex Indicators Tell the Trader Whether To Buy or Sell
Make Money with Forex: How to Start
Long-term Trading Vs. Short-term Trading
Forex Trading Education Can Help Traders in Achieving Success
Difference Between Spot Forex Trading and Currency Futures
An Overview About Forex Trading
Top Benefits Of Trading Forex vs. Stocks
Forex Trading Course
Forex Trading: How To Start for Beginners
Forex Technical Analysis - Running the Numbers
Forex Indicators
Advanced Forex Trading Courses
Online Currency Buying and selling: Understand It And Win
The Basics of Financial Spread Betting
Easy Forex Signals Daily Fx Update
Benefits of CFD Trading
Day trading forex with triangle patterns
Getting the Best Advanced Currency Trader Training
Why Some CFD Day Traders Make Money and Others Dont









Categories

Useful Resources



Stats


Total Category: 571

There are 20 users online.