Should I trade long term or short term in the forex market?

To trade long term or short term, it varies from person to person and totally depend upon the trading style & strategy. Short term trading is most suitable for the traders who are impatient and want to make quick profits. The best example for this can be scalpers. Also risk involved in short term trading is very high, so the trader must ascertain his/her risk bearing potential before.
However, on the other side long term trading requires patience as funds are invested for long time period and gains are not instant. To trade long term, trader must have adequate knowledge of the market and a well developed tested trading strategy to trade.
 
In My Advise you should always look for long term trading if you think you are a new or you want to stay in the Forex market for ever as through the long term trading only you can learn to remain in the side of the majority of the traders of the World.
 
i've tried it long and i've tried it short..its all hard!

FOREX is just damn hard
 
Short term trading is extremely fun. You get into lots of trades, can make really big bucks with small investments, and it’s great adrenaline rushes.

Extreme fun and Adrenaline rushes are things no serious trader should be interested in imo. Too easy to make impulse trades on the short TFs I think serious trading should be boring its a business not a form of entertainment
 
Short term or long term

Hi,

If you are going with short term, you have to do large number of trades. Patterns developed in short term maybe failed. You have to spend on spreads on many trades in short term trading which consumes your deposit.

If you are going with long term, you have to do less number of trades. Patterns developed in long term trading gives you clear idea on Forex market movement. Spread charges will be reduced. Set intermediate targets such as TP1, TP2 and so on when you perform long term trading. It helps you when your expected market movement changes. So you get minimum profit without loss. Intermediate targets suitable for both types of trading but in long term trading it helps you the most.

- Jim @ wetalktrade
 
Jim, while I am dead set against day-trading, I can't agree with all you say about long-term trading, specifically use of TP points. Setting a TP always feels attractive because you get some money in the bank and that's what counts. It also closes off the position or part of it so that reduces risk. So far so good.

But a TP based on pips / points gained makes no sense in TA terms and TA is the driver behind good entries and exits. We go long when TA suggests price more likely to go up: so why exit after a 20 or 30 or 40 point gain if TA still says price is more likely to go up than down?

Secondly, using intermediate TP's tends to cement the impressions that long-term trading needs an account multiple times larger than a day-trader's, and this is not proven.

This also implies to traders new to long-term trading that it is a really really risky venture so best to get part of your position into cash as soon as possible as the whole thing could end in disaster with no warning. Capping profits with a fixed TP is a fine way to improve your r:r but also eliminates the big winners; big winners, if trend-following, are a statistical certainty over any 12 months and can make a huge difference to the bottom line.
 
Convergence said:
Short term trading is extremely fun. You get into lots of trades, can make really big bucks with small investments, and it’s great adrenaline rushes.

Extreme fun and Adrenaline rushes are things no serious trader should be interested in imo. Too easy to make impulse trades on the short TFs I think serious trading should be boring its a business not a form of entertainment
Click to expand...

A longer term view can make trading into a profitable sideline after working the day job. Many can't resist intraday trading hoping to make quick profits. So keep the day job for steady income and manage EOD after work is imho a good arrangement.
 
Trading long term or short term it all depends upon the strategy of individual trader. Short term trading can be more profitable than long term as trader can make large amount of small profits. But there is also high risk involved in it. While in long term, profits are not generated quickly rather investment is made for long time period. Risk involved is low but one needs to be excessively patient to see the meaningful returns. Well it totally relies upon how well we implement our strategy and what suits the best for our trading pattern.
 
Always look for long term Trading as short term trading are really risky and if you are not very much experienced then its not advisable.
 
I believe that long term trading would be more risky and we should do short term trading, and experience it the thing that we will gain if we do that thing, if with the fear of losing, we don't take risks, we won't be able to survive in Forex Trading.
 
Trading short or long term

I think short or long term is depend on user. If they have time to analysis you should use long term, but if they are busy, they should be use short term.
 
Yeah, that is all depending on the traders mind, you have to select whether to trade with long term or short term, on the bases of your skills.
 
You must log in or register to reply here.

Similar threads

G
What is the long-term?
Replies
2
Views
1K
P.I.T.
P.I.T.
T
Long-term and Short-term Setups
2 3
Replies
42
Views
150K
postman
P
8
long and short
Replies
1
Views
3K
halldorpb
H
pedro01
Short Term vs Long Term Trading
Replies
17
Views
8K
ofurbaldur
O
A
USD short term/long term view
Replies
4
Views
2K
chris83
C
Top