Long-term versus short-term trading

So you've done it, you've actually taken the leap of faith and started learning the ins and outs of online trading. Congrats! Going into the unknown is always a little scary, but maybe pushing in the right direction might give you the confidence to move forward. Let's start by figuring out if you're best suited for long-term trading or short-term trading.

Short-term trading

Short-term trading strategies require routine, discipline, daily time commitment, and an up-to-date understanding of the political and financial environment. In addition, short-term trading is fast and exciting and offers the drama of losing positions, but also the thrill of victory. With short-term trading, it's a dynamic roller coaster every day. Putting financial opportunities on hold for a while, short-term trading can be a fun challenge that adds value and purpose to your free time.

Typically, short-term traders are active throughout the day. Short-term traders tend to check their orders when they can save a minute, which makes WebTerminal and mobile trading apps the ideal trading platforms.

If you're willing to keep a close eye on your trades and put in a little time in the mornings and evenings as part of your normal daily activities, then short-term trading could be the next thing you enjoy doing.

Long-term transactions

Long-term trading is not necessarily a more profitable form of trading than short-term trading, nor is it necessarily less profitable. Many traders insist that long-term orders are safer, but this observation is constantly and fiercely debated among professional traders. Patience is one thing that a long-term trader must have. Days or even weeks of market analysis can be done without seeing an attractive long-term opportunity. And, as with short-term trading, there are no guarantees.

Long-term traders often prefer to download and install the free trading platforms MT4 or MT5, the latter of which supports a wide range of add-ons such as scripting, expert advisors and VPS functionality for safer, faster execution.

If taking the time to find the perfect storm and then watching the progress of your order over time sounds appealing, you should consider long-term deals first.

Start low and slow

Short-term traders tend to suck at long-term trading. It's like a sprinter launching at full speed in a mile race. Equally disastrous is when a long-term trader uses short-term reasoning to position a pair. Test yourself with a risk-free demo account , and see which trading style works best for you. Once you have found the right balance of risk and profit for your goals, you can start building your portfolio.

To review: If you enjoy the excitement of competition and want to challenge yourself daily while pursuing profits, then perhaps you should try short-term trading first. Remember, the risk of volatility is always there, so don't guess.

Top Tip: Trade lower volume higher volatility pairs. Compare lower timeframes in the charts and set attractive Take Profit and Tight Stop Losses.

Or, if you don't have the time to spend an hour or two a day looking for opportunities, then maybe short-term trading isn't for you. If you prefer trades that you can leave on the burner to percolate for a while, then long-term is definitely an option to consider.

Before you make a trade with a real currency, register with EXNESS, download the MT4/MT5 trading platform and start experimenting with a demo account. Try to make some long and short term trades and see which ones go right. Maybe you want to enjoy the benefits of both at the same time.