The Forex traders often choose for themselves a comfortable sphere of transactions and specialized just on it. Types of Forex trading are different by expiry time. It can range from minutes to months. Naturally, each type has many internal functions and requirements as to the trader`s skills and the amount of his/her deposit. Forex trading strategies, which are used by the traders are also very different for deals of various urgency. Of course, you can’t play on the scalping in the perspective of open position for several days.
Long – term trade
Usually, the schedule of Forex trading is the path of the professionals. But the beginners can also try to operate here. Long-term perspective is very different from another: chart types become daily and even weekly, appears a lot of free time, the position may remain open for several months. This is a complete investment, not an operation as a dealer-contractor. Of course, you have less stress and nerves which associated with the same day trading. However, trading on the Forex market in the long term – is for traders with serious money capital. So, a good half of the market is eliminated immediately. And given that a long term Forex trading strategy are not free usually, it is a little bit hard for the beginners to work in this sphere. But, this does not mean that it is impossible. It all depends on the zeal of a particular trader.
In order to the beginner could easier understand what the deals urgency is the most suitable for him/her, we will conduct a small comparative analysis.
Trade within the week
Less dynamic and a nervous trade on the Forex market. However, it is more risky. Inside week traders often open just one position, and its profitability depends on the result of work during many days. The working period lasts from a couple of days to ten. Profits are usually higher, but the volume of deals is more serious. It means, there is a need of large financial investments. Also, we can call as the disadvantage the inability to stop the trade at a particular point of time.
Forex trading inside a day
The most popular mode of Forex trading. All transactions are concluded during one day. Traders who practice a day trading, are focused on small but frequent profits. But the profitability of each individual deal is very small. Accordingly, the overall risk is markedly reduced compared to long-term perspective. One of the advantages is also trading undemanding to deposit amount. Mass of Forex market trading strategies are focused on short-term trades, so it is easy to form own strategy even for a beginner. A large part of novice traders chose the intraday trade for themselves.
Between the disadvantages we can allocate the need of full work schedule for success trading. This kind of earnings can not be called passive. And emotional pressure is very high – a trader has to be the very resilient person.