There are two ways to fight in Forex: short and long. Short-term and long-term investment strategies are completely different. However, the reality is that profits do not accumulate as ideally. So it’s important to earn a lot of money.
Trading strategy is important when actually doing Forex. The method is completely different depending on whether you compete with a short-term perspective, whether you compete with a long-term perspective, or whether you compete locally. Trading methods generally include:
Short trade refers to short-term investment, and is a trade that is settled within a few minutes at the earliest and within a few hours at the latest after entry. This method is very simple because if you fight while avoiding economic indicators and political events, you can fight only with technical analysis. In addition, the time from entry to settlement is short, and the price range is not so large, so there is an advantage that it is easy to make a profit.
Long trading is a strategy that trades across days and is also called swing trading. The weakness of long trades is that the timing of settlement is several days at the earliest and several months at the latest, so the number of trades is small and it is affected by political events and economic indicators. Fundamental analysis is essential as well as technical analysis. However, since you can get a large price range compared to short, if you can make a profit once, it is easy to become a total positive for that month.
Scalping is aiming for big profits in the time zone when the price range comes out, aiming at big events of economic indicators and even political events. Almost instantaneous settlement is required, and it is very risky because you will aim for profit in the midst of sudden fluctuations. If you don’t trade by lowering the lot while you’re not used to it, you’ll get hurt quite a bit, but you can also aim for a big profit.
How to trade to earn money
The trade to earn a little money will be a short trade after all. It can be said that short trading is the best for those who want to earn steadily every day. The reasons are as follows.
don’t target price range
Short trades do not aim for a large price range. Since we settle at 20 pips and 30 pips, the probability of making a profit is high because the goal is very close. Of course, the price range is small, so you won’t get a big profit per time, but you can accumulate it steadily. If this is long, you can aim for a large profit, but because the target price range is large, there are many cases where it returns and it does not go well.
Most of the market is range
Most of the market is range and 80% is range. In other words, when you do a long trade, even if you get unrealized profit, most of the trades come back and end in a draw. Compared to that, in the case of short trades, the price range to take is small, so even if it is a range band, the probability of making a profit is quite high.
high interest rate
It will be the same as the above, but in the case of short trades, the price range that you are aiming for is small, so the probability of being able to make a profit is high. The important thing in trading is whether it was profitable or whether it was a loss, not the process. After all, the more times you can take profits, the higher the probability of becoming a total plus.
In the case of short trades, it takes a few minutes to tens of minutes to take profit anyway, so it is easy to avoid political events and economic indicators. It has the strength of being able to trade while avoiding the sudden fluctuations that tend to occur in trading, so there are few irregularities and you can prevent unexpected big losses.
Recommended XM for short trade
XM was originally known as a forex company with too wide spreads. But this was only recently. Now there is an account type called KIWAMI account. The spread is very narrow and very suitable for short trades. Therefore, this account type is highly recommended. Especially for those who trade in pounds, it is recommended because the spread is extremely narrow.