In a
forex market, you are maybe quite familiar about long term trading method. Some analysts out there may recommended the traders to use this method due to it’s benefits.
Actually, it is true that there are some benefits that you can get by applying this system. But before that, it is better to understand about it’s definition first.
Long-term usually takes up to a month to change the trading positions. It is different than the short-term where a trader can make many different positions in a day.
So, from that definition, you should know that thus long term trading has a lot of advantages for people. Make sure to consider about it first before choosing your method.
The Advantages of Long Term Trading
Long-term method is generally done once with a period of up to one month, so you don't have to spend a whole day in front of your computer or mobile device to monitor price movements. In addition, you can also get other advantages as follows that will be good for your trading activity:
1. Smaller spreads
In a long-term strategy, traders can usually get 100 pips to 200 pips from each position. This amount is certainly far above the amount earned on short-term trades which usually only gain about 50 pips for each position.
This makes the spreads you have to pay on the broker much cheaper. It is also a reason of why people then choose the long term trading strategy.
2. Resistance to Short-Term Volatility
One more reason that makes this strategy is much liked by traders is its resistance to short-term volatility. It means that you don't have to worry about stop-hunting or daily spikes in the traded asset.
A trader's position in a long term trading is safe from daily volatility in the money market. You also have more time to change parameters from one position to another when something important happens.
3. It is Simpler
Simpler Basically, long-term srategy has simpler analysis techniques. To be able to successfully trade in this method, you only need to predict the general trend and possible exit points.
On long-term charts, this is generally quite easy to do. In addition, because the intensity of trading is quite rare, you do not have to make an analysis and make decisions every time.
You cannot deny that short-term strategy usually needs a more complicated strategy. It is especially if someone wants to get the profit.
How about the Short-Term Method
Short-term trading is a preferred strategy for many novice traders. Although it takes a lot of time because traders have to monitor price movements every hour and minute of the day. You can say that this option needs more of your time and can be more complicated.
However, this strategy is considered quite friendly for beginners Unlike the long term trading, in a short-term method someone can make various different positions in a day.
Usually, he does it based on the situation or condition which is happened in the market. Make sure to know that you will be faced by many indicators. Besides that, the capital turnover is also quick
Support It with the Right Broker
Choosing the
long term trading strategy will be good for your journey ahead. If it is done properly, you may achieve the benefits above.
However, don’t forget to support it with the best forex broker like Didimax. It comes with the low spread and competitive price which makes it suitable for all types of traders.
Besides that, Didimax forex broker is also under the regulation of BAPPEBTI which makes it is trusted. It has the quick and easy deposit and withdrawal process.
You can choose any platforms because Didimax has the mobile, desktop, or web trading platting. So, running your long term trading strategy will be more profitable with Didimax.