Livermore famously said: This is a difficult industry that requires perseverance. The speculators will either devote themselves wholeheartedly or will soon disappear from this business.
Foreign exchange transactions are divided into four levels: ultra-short-term, short-term, medium-term and long-term. The division is mainly based on the time period of holding positions, and there is no uniform standard for this time. How to divide is also different from person to person. Let me say my own point of view:
Ultra-short-term traders refer to intraday operations, that is, the actions of opening and closing positions within a day. Short-term traders already have the awareness to do overnight orders, generally holding positions for a few days. Mid-line traders generally hold positions for several weeks. Long-term traders generally hold positions for more than one month.
In day-to-day ultra-short-term trading, it is often an idea to make a profit and run away. It is difficult to achieve a reasonable profit-loss ratio. Moreover, the time for thinking before placing an order is relatively short, and most of the traders who lose money are doing ultra-short-term. The long-term trading cycle is too long, only a few transactions a year, so it is not the main source of profit. I think these four trading levels, short-term and mid-term trading are more profitable.
Short-term and mid-term trading are based on the profit-loss ratio while increasing the success rate. When the risk to profit ratio is 1:3, the success rate can reach more than 30% to make a profit. In addition, the number of transactions is also the key. After the success rate and profit-loss ratio are relatively high, the more operations are performed, the more profitable funds will be. This is what long-term transactions cannot match.
From the perspective of physical health, ultra-short lines need to be “standby” by the computer frequently. Over time, the body will become exhausted. Short-term and mid-term trading will be relatively easier. Make a good trading plan and operate when there is a good opportunity. A full profit can be used to make a super short-term profit many times. Without a good opportunity, short-term and mid-term traders can rest easily.
Comprehensive analysis, short-term and mid-term trading are the most recommended, because they are between ultra-short-term and long-term trading, and there are more trading opportunities. They are a good choice for investors. Most of the time, I am doing short-term and Mid-line trading.