Pangmatagalang Estratehiya sa Forex Trading (Bahagi 1)

When traders are online exchange rates, most traders are happy to be content with day trading. Although the latter can be very exiting and profitable, the largest profits are more susceptible to being made by long-term traders, also known as long-term Forex traders or swing traders.

Intra-day trading systems attract a lot of attention. Many traders believe that trading can be done correctly or in a profitable way only by short-term trading.

One of the disadvantages of short-term trading is that it requires time and concentration, which explains why not everyone can trade in this way.

The good news is that long-term trading offers an interesting alternative that is available to a larger group of traders, even if you have a full-time or part-time job.

This article addresses some of the ideas and myths that surround long-term trading and explains how most can benefit from long-term graphic analysis.

We will also explore the long-term stock exchange on currencies and highlight the best practices and things that you should take into account if you would like to make long-term trading on currencies. Discover now what it implies and understands.

Long-term Trading - Definition

Long-term trading on currencies is defined as long-term Forex positions for a large number of days. Unlike day trading, long-term trading of Forex pairs does not require traders to spend much time on their desk.

The idea behind the long-term CFD trading strategy is to grab as many pips as possible. In general, swing traders seek to earn at least 200 pips per position. Long-term traders will achieve higher returns than intra-day traders, while their opportunities are often more limited.

It is for this reason that this level of trading requires a lot of knowledge and preparation. When it comes to the long term, fundamental analysis is very often used in Forex trading.

Is It Possible to Trade with Long-term Graphics？

Many traders believe that daily, weekly and monthly graphics are only valid for analysis. These terms are used as directional graphics to refer to momentum and trends, but not for potential entries and exits.

However, these graphics in the long run can also be used in trading. For example, candle models on a daily graphic are probably more useful than over shorter periods of time.

Graphic trends and models also tend to be less erroneous in the longest periods. In addition, it is easier to refer to the models of the waves and understand the larger structure of the market.

Long Term Scholarship - Is There Less Minimum Price Movements on Longer Term Deals？

This is in fact : The shortest periods show more volatility because the price goes up and down during a given trading day. The daily average ATR (Average True Range) means for currency pairs or financial instruments which evolve rapidly could be hundreds of pips in certain cases.

Of course, traders will not be able to capitalize on these small swings especially on daily, weekly or monthly graphs, but there is a positive side to this. The short term is more difficult and require more experience to be traded exactly because prices fluctuate faster.

Even if your goal is to become an intra-day trader or scalper (trading in the very short term), it is generally not bad to start with more advanced levels to understand the dynamics of trading, from technical analysis to trading psychology.

(To be continued ...)

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