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Trade
Medium-term Forex trading
A distinctive feature of the medium term trade is the time during which the position remains on the open market. The job of a trader inside day is often called short-term trade, but if positions are not closed for weeks or even months long. Medium-term trading remains trapped between the two extremes, taking up a position, is able to collect the strong neighbors.
Usually beginners currency speculators prefer short-term trading techniques. With increasing experience, the merchant decides whether he continues to engage in intraday trading, or he will be greater to analyze the market, preferring to deal medium.
Features medium-term trading on the foreign exchange market:
• the duration of the transaction from 1 to 6-7 days
• profit and loss items are quite significant (typically hundreds of items)
• spread value plays a smaller role than for intraday trading
• work TF, as a rule, H1 and H4
• technical and fundamental analyses are becoming more efficient than intraday trading
The trader has to predict the behavior of the market is much more forward than when, for example, scalping. If the speculator could not take into account fundamental analysis and avoiding news releases or making deals short term, now have from FA to be considered.
In the work of the speculator is almost completely lost the hustle and bustle, don't want to rush it and constantly keep track of every price movement on the chart. When the medium trade rush is not necessary.
To maintain a certain level of risk, reduces the size of the trading lot, about the work of scalpers. Price may take a large number of items in any of the parties, and therefore, a lot need to use, so as not to get a serious monetary damage.
Inconvenience when selecting the medium for trade:
• accrual swap
• review mid-term the system will take several times more time than scalping
• will have to pay much attention to technical analysis, as well as FA
Since positions will be carried through the night, then dealing center will charge a swap. In order not to lose the money, because the swap often brings losses, enough to open a trading account without incurring a swap space.
To ensure profitability the new system, traders are testing on a demo account or a cent deposits. Naturally, when using short-term strategies necessary for the conclusions of the statistics may be faster to obtain than the testing medium of the system.
The trader will need to focus in the fundamental analysis, even if before he did not use it. Given that the deal could open the market even more than a week, you will have to take into account everything that can affect the market price. The question here is not limited to only planned, but also includes various events and the mood of the market.
Medium-term trading can be described as calm. First, the trader is in a hurry, catching the market every item. Secondly, small price fluctuations do not play any role for the position, the purpose of which, for example, 200 points. Thirdly, due to the lack of haste, one can calmly analyze several charts of different currency pairs.
Many experienced speculators is considered a medium-term trading the most attractive on the market. In addition to the benefits listed above, it is worth noting that dealing centers, which often oppose scalping, never have nothing against the medium-term trade. Thus, the dealer will not meet any further obstacles from the company which trades.
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| Category: Forex | Added by: (06.11.2017)
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| Views: 290
| Rating: 0.0/0 |
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