Which One Do You Like, Short Term or Long Term Trading?
Every trader has different trading styles. Depending on the personality of the trader. Trading short term (long term) or long term (long term). Between long term trading and short term trading, which one is preferred?
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 able to continue to achieve profit as desired. Patience to be able to take 20-30 pips per day and repeat it continuously, will make traders bored. And ultimately make a mistake that led to a large floating loss.
Actually, if you can keep doing that – that is, by setting a daily profit target – then you will be able to control your own trading and profit of course. If there is a long trend, but in a short time range it often makes you feel hesitant, is it really reliable? And you will never know when a trend will reverse direction, this is certainly very risky because it will threaten the profit already collected. Therefore very few traders are trading with the long term and that is one cause.
Long term (long-term) trading requires a somewhat complicated knowledge of economic fundamentals.
Fundamental or economic data takes time to dig it up. Knowledge of economic fundamentals is a step forward, but applying it in forex trading is another issue that might make you slightly lost in direction. Long term trading usually requires less action. Because profitable trading opportunities do not happen every day. This kind of trading style is not suitable for traders who only rely on luck alone.
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 styles, which one is better? Surely this is very dependent on your own style. What is clear, choose your forex trading system must be done regularly to achieve profit in forex trading. Evaluate the trading system you use and continue studying forex to improve your trading ability.