In Forex you can trade short term, medium term but which is the best time frame for you to trade for the biggest profits. Let's take a look at this essential piece of Forex education...
The first method is probably the most popular with novice forex traders and is.
Forex Day Trading
The aim here is to trade with tight stops and small risk and scalp small regular profits. It's not a good choice though! It doesn't work because all short term volatility is random and when you have random volatility, you can't win - Period.
There are lots of sure fire systems sold that are short term but check the track records and there all back tests on paper and not real money.
Don't fall for the myth you can make money day trading.
Forex Swing Trading
Now this is a great choice for novice traders. You are trading time frames of about 2 days to a week, you get plenty of action and you don't need much discipline as your profits and losses are taken quickly.
You can put together a simple, robust swing trading system quickly and soon be trading for some great profits long term.
Forex Trend Following
The most lucrative and the hardest to master but with the right Forex education and mindset you can make huge gains.
The best Forex trends last for many weeks or months and using leverage and catching them and holding them can give you stellar long term gains furthermore, its very time efficient, as you don't make many trades.
It's hard to master though as you need to accept short term dips in equity to get a longer term gain and you need patience to wait for the right trends.
Final words
So your choice is really be a swing trader or trend follower and not a day trader.
You will know which method suits you by your personality. Both the swing trading and trend following make money and can be mastered in a few weeks.
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Article Source: http://EzineArticles.com/?expert=Monica_Hendrix
Tuesday, October 6, 2009
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