LONG-TERM VS SHORT-TERM FOREX TRADING STRATEGIES

[Vishnu]

Long-term trading strategies

By definition, a long-term investor will need a lot more patience than a short-term one. However, it might also prove to be much less stressful. Your long-term strategy might be defined by one of two strategy positions:

Trading Trends - Instead of merely predicting the highs and the lows of a position, trading trends begins where this new high or low starts. Spotting this position as being a new one is the time to get in.

Swing Trading - This is where traders look for a price that either spikes up or down. By watching the market very closely, swing traders can mentally calculate the particular resistance and support of that position. They can watch for momentum to shift before the currency does. Swing trading is best for positions lasting two to seven days.

The key to successful long-term trading lies in the ability to identify and comprehend indicators, strategies and signals alongside strictly managing the money used in that strategy. This inevitably involves multiple smaller trades that generate lower but more consistent returns.

Short-term trading strategies

These strategies for day trading can be initiated from almost any trading platform and device, including smartphones. Commonly included tactics such as scalping will be key skills here where the market will need to be watched like a hawk. You'll want to keep in mind that short-term trading tends to require more of your time and energy.

Moving Averages - A combination of different moving metrics is required to establish a position and then identify a trend in the currency. A simple moving average might be used to identify the trend and a weighted moving average might be used to confirm the time to buy that position.

Relative Strength Index - Traders will use this chart indicator to identify the historical strength and the weakness of a currency to determined when it has been overbought. Readings range between zero and 100 - readings above 70 and below 30 crucial to buying and selling.

Forex traders should use a range of different strategies and apply different triggers when analysing currency movement. But an understanding of both long and short-term trading strategies will ultimately be required to make the right calls if any position is going to be sustainable. Understanding the type of trader you are and the risks you are willing to take will help form your trading strategies and help you to understand the right calls and positions.

[Sameeh]

Both short term and long term strategies are good and both can help the trader to make money, but i think that long term trading requires more experienced traders that can analyze the market on long term and so they can reach they targets with little risk, and the short term trading is more suitable for the traders of less experience as they need to take some pips from each trade and that what they want to achieve, for me i trade with short term strategies and in most cases and trade with the long term strategies in little cases, the trader needs to practice on both strategies and see shich of them give him good results and continue trading with it as this will increase the success rate for him and let him to make more money.

[Katrina]

If you wish to survive in long run, you must look for the acquring the full knowledge regarding the Forex Market and its all other aspects. You should learn about the risk management.

[KisrBerny]

You should always have a long term strategy.
Every day there is something new, and you need to leave all your business and monitor it. The last two years are especially rich in new products.
I created a forex account not so long ago and became more deeply and in detail acquainted with cryptocurrency in general, as well as with investments. In particular, I have studied the Dogecoin cryptocurrency, and I can't say that this cryptocurrency inspires confidence. But, of course, I can be wrong because this is very unpredictable. We have all seen what happened to bitcoin, and this is a clear example. Here, too, a lot depends on what movements the giant companies are making. After all, the fall or growth of a particular cryptocurrency almost directly depends on this.

[maby81]

Both strategies have their pros and cons. You need to be able to understand these and make the best use out of them. Most traders seem to prefer short term strategies as the market is constantly fluctuating. Tactics like scalping are common ones for example. Longer term strategies however are very important as tehy can form your basis for trading. You need to be able to understand certain key indicators and signals. Also you need to place importance on risk management in any strategy.