In foreign exchange transactions, according to the different holding time, it can be divided into short-term, medium-term and long-term trading methods. Among them, foreign exchange short-term trading is the most popular and the most profitable trading method. For novices, they may not know much about foreign exchange short-term trading. What is foreign exchange short-term trading? How to proceed? The editor below will introduce it.
Foreign exchange short-term trading
What is short-term foreign exchange trading? Short-term foreign exchange trading refers to a fast-forward and fast-out foreign exchange speculation strategy. Generally, the holding time is very short. For example, the popular online foreign exchange intraday short-term trading strategy, people who use this type of strategy, from placing an order to closing positions are generally controlled within 24 hours. Celebrities who use this trading strategy, such as Japan’s Fairy Four Price. The advantage of foreign exchange short-term trading is that the effect is faster, and there is no need to hold positions overnight. The disadvantage is that the transaction cost is very high, and there are certain requirements for the individual’s psychological endurance.
Understand what foreign exchange short-term trading is, let’s take a look at how to conduct foreign exchange short-term trading.
First, in foreign exchange short-term trading, the principle that must be followed is “fast” and another point is “short”. Many investors originally planned to do short-term trading, but in actual trading, for some reason, they were unwilling. In the end, it is a short-term and long-term job, which violates my original intention and disrupts the trading strategy that I have formulated. In the end, it will even turn profit into loss, and the mentality will be affected to a considerable extent. This is a very bad phenomenon.
Second, short-term foreign exchange transactions should be carefully studied from the three aspects of “volume, turnover rate, and trend line”. The short-term exchange rate has risen rapidly to more than 30%, especially for doubling currencies, and trading volume has surged. The turnover rate has exceeded 15% in a row. The increase in volume and price has stagnated, and it has fallen below the 5-10 day average. Therefore, we should make strategic lightening preparations.
Third, the general situation is not right, no matter how long or short the time is, never trade. When the situation is right, the odds of winning will be much higher than the aforementioned 50 vs. 50. The situation is not right, like sailing against the current, smart short-term trading must set a long holiday for oneself, fighting with the situation is absolutely unnecessary, and may cause casualties. What is the wrong situation? That is, if you fail to open positions consecutively, then you must have a problem with your state. Short-term traders must take a few days off to adjust their mentality.
Fourth, short-term trading is not daily trading. Short-term traders are called day traders, but they cannot trade daily. If you made $500 in trading today, don’t expect to enter the market tomorrow and make another $500. The advantage of short-term trading is that it is like doing business on your own, and you can choose which day to do it or not. You should not choose to go short-term on the day when the Fed announces that it will not raise interest rates. That day should be a day to watch a movie. From a certain perspective, short-term trading depends entirely on psychology, emotions, and feelings.
What is short-term foreign exchange trading? The editor above gave you a general introduction, and I believe investors already understand it. Investors, especially novices, recommend short-term foreign exchange transactions when trading.