subject: Choosing Your Effective Forex Trading Strategy - Long Or Short-Term [print this page] A vital component of doing well in currency trading is the ability to identify an effective forex trading strategy. So how do you do this? To start, the first step you must take is to decide on earning daily or weekly profits no matter how small, for a long period of time. You'd have to agree that being in profit, however small, will certainly have a positive influence on your life.One of the hardest things for a trader to learn is discipline because it often involves changing habits ingrained into from years gone by. Most traders avoid developing good trading habits and instead they spend their trading careers searching for the perfect strategy that will bring them in the highest financial returns.We should ensure that we practice a disciplined approach to our forex trading by writing down a daily routine that we adhere to fervently. Do you want to follow a long or a short-term strategy? Or maybe, do you want to use both of these strategies? That will ultimately be your decision.If you decide on the short-term strategy, you should be certain to abide by strict rules of engagement during the trade. Make absolutely sure that you are very clear about when to cut your losses and when to take profit. If you fail to adhere to these basics, then your forex trading days will be numbered.However, if you're more akin to the long-term strategy, you should consider using a trading robot to automate your trading as it is physically impossible to always monitor your positions like you can with the short-term strategy. You will be able to take a step back and make more level-headed decisions. Personally, I find the long-term more attractive, but by all means use the short-term strategy if you crave a more exciting trading arena.The forex trading strategy that you ultimately adopt should suit your budget, risk tolerance and personality. Someone who enjoys the exhilaration of minute by minute trading might like the scalping strategy, whereas a person who prefers a more hands off, lower adrenaline rush style of trading might be better served by an automated longer-term approach.So, go ahead, gather and read as much information as you can about forex trading, open a demo account and start trading. And definitely delve into the implementation of trading software to give you that edge to becoming a successful forex trader.
Choosing Your Effective Forex Trading Strategy - Long Or Short-Term
By: John Eather
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