What are the advantages of foreign exchange short-term trading? Is the short-term more profitable than the long-term? Many foreign exchange traders will choose short-term trading at the beginning of the transaction. After all, the foreign exchange market is a special financial trading market, and the stock market needs to wait until the next day to sell transactions...
Many foreign exchange traders will choose short-term trading at the beginning of the transaction. After all, the foreign exchange market is a special kind of financial trading market, which is different from the trading model of the stock market in which it cannot be sold until the next day. Forex trading can even buy at the last second and then sell at the next second because it is not easy to be trapped by the market, and many people like it. Still, many analyses suggest that God does long-term trading, so short-term trading is in the end for novices. What are the advantages?
There are many short-term and even very short-term exchange rate fluctuation opportunities in the foreign exchange market, which is very good. For short-term transactions, investors need to understand the factors that affect exchange rate fluctuations and pay attention to currency exchange rate policies and the impact of emergencies in a timely and accurate manner to seize opportunities effectively. Make money. We need to master market analysis skills; the most important is technical analysis. Today's short-term trading advantage editor will also give you a good presentation.
First of all, when conducting foreign exchange transactions, we need to avoid risks. Not only foreign exchange but all kinds of financial investments are to minimize risks. Short-term trading can be said to be the operation with the least risk in trading. If it is a short-term transaction within a day, your position is zero after that day's trade, so you don't have to worry about whether the market will reverse; sleep peacefully, which can also keep your account balance flexible.
High capital utilization
If the market fluctuates three times within the price range, the long-term trader's maximum profit can only get one day's gain, but repeated operations can be performed if short-term trading is selected. Theoretically, traders can earn three times the doubling in this way, and the funds used have not entirely increased. It can be said that the utilization rate of funds has been dramatically improved, so your capital utilization rate is higher.
Increase trading opportunities
Disconnected foreign exchange transactions can amortize your losses slightly, so you can avoid transactions and incur relatively significant losses. The daily market growth is usually relatively narrow. Still, the swing is vibrant, that is to say, compared with the laissez-faire of long-term traders, repeated shocks several times, for short-term foreign exchange traders, it increases some trading opportunities and can get.
Improve transaction accuracy
The longer a trader trades, the more difficult it is usually to predict. Conversely, the shorter the time, the higher the accuracy. Therefore, the short-term is better than the long-term. Successful short-term traders can conduct qualitative and quantitative analyses of current price trends. Thus, more short-term transactions can significantly improve the accuracy of transactions.