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Long Term Or Short Term Trades?

In fact, I am able to divide all trades in foreign currency trading as actually belonging to one of a couple of main groups: a long term trade where I’m going to hold it for a one day or even more and also a short term one that I really plan on getting out of before the end of this day. And so let’s take a look at how exactly you are able to utilize both of those trades to profit from the modern forex market.

Well, if to talk about me, I’m going to enter a long term trade when I do believe that there is some strong reason for a particular foreign currency to go down or up in actual value. For example, recently I was long the Australian dollar because I really believed that the price of gold was definitely going to spike. Of course, the actual price of the Australian dollar and gold are certainly correlated.

And in that case, I was quite comfortable holding that certain trade for a one month or even more and also was not going to panic even when it actually went against me for some period of time. For sure, I definitely believed in the long term value of this trade and also was ready to weather some short term fluctuations.

Without any doubt, it can be a bit nerve wracking sometimes to see this trade to go against you. But still if you really believe that the reason you actually made it still holds, then it is necessary for you to learn not to worry about your current position on every minute basis.

Moreover, commonly I also expect to make or lose my money on my long term trades than on my short term ones. And that certainly makes sense thinking that I’m going to invest more into it.

In fact, every short term trade can actually be made for so many various reasons. Thus you might obviously be reacting to some interesting price action and maybe the economic number which was only released and you believe it may possibly move the markets just in the short term.

Besides, for so many forex traders, all short term trades are certainly based on technical analysis of the markets and anything they to see on the charts. Well, those trades may obviously last just a couple of minutes or perhaps even several hours, all depending on the actual reason for the trade and the current trading environment.

And finally, so many of my own trade that I personally come up with are definitely long term. Moreover, I surely rely on some forex trading programs or robots to generate all short term trades for me.

There are two ways you can earn on currency exchange market.

You can learn the basics of currency exchange trading with the help of a good forex book and do the forex trading yourself.

Or you can hire professional traders to manage your account and they will trade for you. Find out more about forex investment.


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