Reasons You Have to Learn Short-Term Trading

WikiFX Strategies (11 Mar.) - While long-term investors focus on the intrinsic value of assets and allocate capital on long-term value, short-term traders pay attention to opportunities in the near future. However, long-term investment is not suitable for all. This paper has listed some reasons why you have to consider short-term trading.

Market Cycles

Long-term investors may not adapt to the market cycles. On the contrary, short-term traders could make decisions in a short period of time, as well as enter and exit the market based on the trend direction.

Uncertainty

Markets are difficult to predict. Despite potential profits, long-term investment also brings about various uncertainty. But day trading could reduce uncertainty instead.

Capital Requirements

Long-term traders need lots of capital to start investing. But for the average traders, the capital required is more flexible.

Necessary efforts

To be a successful long-term investor, you need to present your views to company management. Meanwhile, you have to get some media contacts to make sure your views will be heard by the management. All this is too hard! Short-term traders never need to make such efforts.

Another reason for choosing short-term investment is the opportunities you can capture when trading. Long-term traders are unable to change their loyalty in a matter of minutes, but short-term ones could find out opportunities at the time.

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