The trend of the foreign exchange market is ruled. Every trader likes a good, strong trend. As a trader, many of us want to make a quick profit. Who is not? The problem is that by focusing on fast profitability, we often overlook a more profitable strategy, which is a long-term trend.
Let us first discuss the anatomy of short-term trading. If you are really lucky, short-term trading can last from less than a minute to about 20 minutes. A 20-minute deal should bring huge profits. These are unusual transactions, and 1 to 5 minute transactions are more common during day trading. As a trader, you must make an instant decision whether to enter a short-term trade.
When entering short-term trades, savvy traders will set exit points, take profit and stop loss. However, most traders have set stop losses, but have not set targets for their profits, they can exit at their own discretion and are usually lucky. If you are making a short-term trade, please set an exit point before entering the trade. As the trade progresses, you can adjust them at any time, but you will protect yourself from sudden reversals and changes in market sentiment.
Long-term trading of foreign exchange is often overlooked and even disgusted by many traders. For one reason or another, the belief of most forex traders is that most of the money is being scalped in the market and overnight positions are not a good strategy. Um… this assumption is wrong. The foreign exchange market is very similar to the stock market, and those markets that trade long-term charts, whether using daily or weekly charts, have a better chance of gaining incredible profits.
The reason is that, in addition to special events, the currency generates huge gains and losses over a long period of time, rather than within a 30-minute time span. If you look at the long picture of any currency pair, you will see that if you trade long-term charts, you will maximize your profits. This is because, unlike a small day's rise in trending currencies, you can keep the trend for days, weeks, or even months. I asked, where do you see the opportunity to get more profit?
I agree that long-term charts provide a better opportunity to maximize your profits, but it requires discipline and reorienting your thinking to keep trading for longer.Easy Accounting For Investment Clubs,Click here!