So you did it, you actually took a leap of faith and started learning the ins and outs of trading online. Congratulations! Heading into unknown territory is always a little scary, but perhaps a nudge in the right direction might give you the confidence to push forward. Let’s start by figuring out whether you are best suited for long-term trading or short-term trading.
A short-term trading strategy requires routine, discipline, daily investment of time, and an up-to-date understanding of the political and financial environment. Also, short-term trading is fast and exciting and offers the drama of a losing position but also the thrill of the win. With short-term trading, it’s an action-packed rollercoaster every single day. Putting aside the financial opportunities for a moment, short-term trading can be an entertaining challenge and add value and purpose to your free time.
Typically, short-term traders are active throughout the whole day. Short-term traders tend to check on their orders whenever they can spare a minute, which makes the WebTerminal and mobile trading app the ideal trading platforms.
If you’re willing to follow your trades closely in between your normal daily activities and invest a little time in the mornings and evenings, then perhaps short-term trading might become your next favorite thing to do.
Long-term trading is not necessarily a more profitable way to trade than short-term, nor is it less profitable. Many traders insist that a long-term order is safer, but that observation is constantly in hot debate amongst pro traders. Patience is one thing a long-term trader must have. Days or even weeks of market analysis can go by without ever seeing an attractive long-term opportunity. And, as with the short-term trades, there is no guarantee.
Long-term traders usually prefer to download and then install the free trading platform MT4 or MT5, which supports several additional features such as scripts, expert advisors, and a VPS function for more secure and faster execution.
If spending time searching for that perfect storm, then watching your order progress over time sounds appealing, you should consider long-term trading first.
Start low and slow
Long-term trades by short-term traders often end badly. It’s rather like a sprinter launching at full speed in a one-mile race. Equally disastrous is when a long-term trader targets a pair using short-term reasoning. Test yourself using the risk-free demo account and see which trading style suits you best. Once you’ve found a balance of risk and profit that suits your goals, you can start working on building your portfolio.
To recap: if you like the thrill of competition and wish to challenge yourself daily while in the pursuit of profit, then perhaps you should try short-term trading first. Just remember that the risk of volatility is always there, so don’t guess.
Top tip: trade less volatile pairs that have high trading volumes. Compare lower time periods on the charts, and set an attractive Take Profit and a tight Stop Loss.
Alternatively, if you don’t have the time to spend an hour or two each day looking for opportunities, then perhaps short-term trading is not for you. If you’d prefer trades that can be left on the burner to simmer for a while, then long-term is definitely an option to consider.
Before you make any trades with real money, sign up with Exness, download the MT4/MT5 trading platform, and start experimenting with a demo account. Try running some long-term and short-term trades and see which ones feel right. Perhaps you’ll want to enjoy the benefits of both at the same time.
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