Short Term Trading and Long Term Investments: Two but One

Short Term Trading and Long Term Investments: Two but One

Double what we have is one of the reasons for us to invest, just as the traders in forex market. The traders in the forex market can be classified in several types in the matter of strategies of their trading; both short term trading and long term investment. Your trading habits and risks might bear important aspects that should be considered when you decide to enter the online forex market. The trading that you’ll do must be based on your goal. If your goal is for long term investment, choose the one with long term trade style. But, if you want to gain direct profits, short term trade is the answer.

Both short term trading and long term investment have their own characteristic. The short term trading done by the enthusiastic, aggressive traders is the trading that lives up the daily trading and it is very dynamic. Long term trading as a long investment strategy carefully watches the market and when they’ve been waiting for long enough, they’ll make the trading and leave the market with substantial and significant profit.

The forex trading is like the suitable short term trading style and it’s a short term investment. Currency trading is on day by day basis; therefore, it’s a suit for short term trading. However, you must also consider how much time you have each day to monitor the currency trading if you decide the short term trade style. It’s because, you have to pay attention to the market development and also make significant analysis to all data and information that you have gathered to support your trading decision. Short term trade in forex trading is scalping, however, it’s necessary to avoid losing by making a comprehensive analysis before the final decision is made. Turbulences might occur in the market and it should be carefully watched if you want to gain profit from the short term trade like in forex trading.

As for the long term trading, a much more careful analysis is needed. When we decide to enter the long trade as a part of our long term investment, we must be aware that we are looking for long term impacts. Our entry and exit in the market must be carefully managed. So many X factors could interfere in our investment. Political crisis, economic turbulences, or another X factors could occur and impact on our investment. It’s not just within days, sometimes, months or years. We don’t have to monitor the market on a daily basis, but we should always be aware on all information and prediction since it will be our consideration on entering the market or exiting the market.

Both short term trading and long term investments have their own soft spot and hard spot. It’s now up to our goals and us. For sure, you have to be sure about your needs. Since trading is not a gambling, but all about analysis, a very careful analysis, we must be well prepared when start to trade.