Many people will tell you that long-term strategy is not good. If we were a fan of short-term strategy, we would have also told you. The truth in this industry is trading this market is only profitable when you know what happened with the trend in short terms. People think they have mastered the trend analyses and start trading with short-term strategy. This article will tell you why it is not good but the best and wisest method of trading. When you trade in long-term strategy, not only you save your capital but also your profit.
Day trading is very risky since the traders have to do the market analysis in the lower time frame. It’s true you will get lots trade setups in the lower time frame but filtering out the false trade setup is really hard. Unless you have extensive experience in Forex trading profession, you should never day trade the market. Always start trading in the longer time frame since it will tremendously reduce your risk exposure.
Long-term strategy gives you a wider window to analyze
The best thing about using long-term strategy is, it gives you a wider window to look at the market trend and changes. In long-term strategy, you will keep your trades open for many weeks and also even for months. This is not going to happen in short-term as you will place the trades and closes within hours. People who trade with long-term strategy know it is also good for their career. They get to have time to think about their trades. As they have more time, the market volatility also cannot hit them.
Use the price action signal
Being a long-term trader you should use the Japanese candlestick pattern. Trading CFDsis extremely easy those who know the perfect way to read candlestick charts. Instead of trading the minor support and resistance level, focus on the higher time frame data. Those who are smart always follow the conservative way of trading. As a Forex trader, you have to learn to stay on the sideline. Try to develop the habit of a sniper. You will take one shot and that shot will be your best one. Never try to win all trades. Consider the random outcome of each trade and limit your risk. Try to use the combo candlestick pattern since it will increase your winning edge. If possible use the chart pattern trading strategy along with price action confirmation signal. But always remember to trade like a conservative trader.
Volatility cannot take your profit
Many people have lost their profit when they tried to trade with short terms strategy. It is not their fault as they did not know that trading with short time tips can make them lose more money. This is the reason scalpers and day traders lose the most amount of money. They use short-term strategy and they can only keep their trades for hours. The scalpers have to close the trades almost instantly and it is a big risk in their money. If the trend changes or it becomes volatile, they will have to lose all of their money. When you are using positional trading strategy or swing trading strategy that is long term, you can be free from any worries. You know it will not do any harm to your trades as you have got plenty of times. You can leave them open for months. The short-term traders always take the first hit when the market trend changes and gets volatile. If you want to keep yourself safe from volatility, trade with a long-term strategy.
Gives you time to understand Forex trading
Trading in this industry with currency pairs also needs time to understand. People need to have time and it is the only long-term strategy that gives you the time. If you want to trade for a long time, use the long-term strategy.