Razor1911
Active member
In the forex market, you can mainly trade in two ways, intraday or short term trading and long term holding which is generally for more than 1 year.
Both of the types have their own advantages and disadvantages. The intraday trading is good for those who wants to earn quick money. Traders normally choses the most volatile pair. The selected pair's price action should be fast, otherwise the fluctuation would be very slow. Generally, high leverage is preferred in short term trading, as the amount of margin required is very high. And leverage help him to hold higher margin.
Where as in long term trading, investors choose low leverage. Preferably most of the investors do not take leverage at all. They hold the money where the long term growth is more, hence they usually avoid the pairs having high volatility.
So, as a trader which one do you prefer to trade with, short term or long term?
Both of the types have their own advantages and disadvantages. The intraday trading is good for those who wants to earn quick money. Traders normally choses the most volatile pair. The selected pair's price action should be fast, otherwise the fluctuation would be very slow. Generally, high leverage is preferred in short term trading, as the amount of margin required is very high. And leverage help him to hold higher margin.
Where as in long term trading, investors choose low leverage. Preferably most of the investors do not take leverage at all. They hold the money where the long term growth is more, hence they usually avoid the pairs having high volatility.
So, as a trader which one do you prefer to trade with, short term or long term?