If you want to make it in forex and you are having a hard time then it is best if you go for long term. You may not see significant result in the beginning but after awhile when things start kicking goof you will be able to see.
Robert647373 posted: Long trades are good, of course, but the problem is that there are no exact guarantees that a long trade will not only not bring you profit, but also will not blow up your account. It is often difficult to pinpoint the direction of the price.
That’s right. But long-term trade has potential to make big money compare to the small trade.
Indeed, long term trading requires extreme patience and a sound capital. You cannot manage to get profits on long term trades with tiny investments. Swap charges is one of the reason why long term trades are not fruit full with less capital s almost all or your capital will be eaten up by the swap charges. Further long term trade also involves many huge market movements, thus less capital will close your trades during draw downs.
There are many tools that are safe havens for long-term trading, when you can know that in any case, you can foresee movement in the future, such as strategic resources (Gold, for example). Speculative instruments with a more volatile pattern of movement and unpredictability of movement in long-term trading are more suitable for those who trade faster. At the same time, I consider long-term investment in a trading instrument less risky.
Many new people to trading often want to make fast money with small capital trying to get rich overnight and that is the first biggest mistake not understanding how the market works. 2nd mistake often related to account funds,margin and traded lots size were they tend to increase lots size wrong in relationship to account funds and suddenly gets a margin called. 3rd mistake,they don't seems interested to learn and get familiar with basic important terms such as spread,slippage,account stop levels. What is pip,point,ticksize,news...and how all this impact an order placed.
Long-term investments in my opinion is the best way to grow a capital along with good money management and strategy,steady and safe. Patience is a key factor which many don't have but as usual in many cases - driven by greed they dig their own hole to fall down in and eventually loose it all in lack of knowledge and understanding. That then becomes the 1st hard key lesson to learn and keep in mind and fall back to.
Long time frames: low risk, short time frames: high risk. Big profits: high risk, low profits: low risk. Really simple. Always invest into more than just one thing. If one thing is losing big time, the other one could still give you a huge profit (if both was invested in a correct way (e.g. hedged)). That's how those low interest rates from banks, funds and insurance agencies result; especially hedge funds can have huge losses (a max. DD of 20% is the main thing for huge fund managers) but also huge profits at the same time (because they're hedged). It's just a question of risk/reward, money management and consistency. On the long run the banks will always win, because they have the bigger equity/liquidity than you. You can only win if you're trading consistent (no huge up and downs and being humble (no greed)). At the end no one will make money fast, only gamblers do that from time to time (they still need to be lucky enough to get all their money out of their accounts after a huge profit happened). 😉
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