|
You can trade both ways
To answer the original question:
You can actually trade both long term and short term. The solution is to separate accounts and a long term trading stategy for the long term and a short term stategy for day trading.
Develope your trading stategies and do both. Yes trading long term requires a little more equity and bravery as you see your profits wanning during a retracement. However, if you have an exit/stop-reverse stategy that works you will be okay. (The sentiment for the USD since April 02 has been sell it...simple choice for position trading right now until the equiites markets and the middle/far east political problems are solved...sell the USD, the only problem is finding the correct entry point at the top of a retracement then jump into the position and ride the wave)
Intrady trading will definately make you more profitable, much quicker, however, there is much more volitility, so you need to be ontop of your game.
You can have a 7 plus figure margin account within 1.5 years with relatively small profits of 50 pips per week if you re-invest the profits and increase the amount of lots as your margin account allows trading as a day trader.
Also DO NOT, I repeat DO NOT look at small time frames to day trade....You will be handed your head on a platter very quickly. If you are day trading, establish the long term trend on larger time scales and look for your entry and exit on smaller time scales...It's that simple.
Educate yourself, test your trading stategies, and demo trade for months before jumping in with your hard earned cash.
Good Luck and Have Fun Riding Those Forex Waves
PS Daanacker...Trading against the trend is all relative...what looks like a down trend on a 5 minute chart is really a short term reversal on a 15 minute chart, which is really on a 30 minute chart just side ways movement, which on an hourly chart is a slight retacement, which on a 4 hour chart is the continuation of a trend , which on a daily chart is a sideways movement, which on a weekly is a sllight retracement, which on a monthly chart is a continution of a trend....pick your poison...establish which time frames in the longer term you think give the overall picture and trade in that direction with your entry on the smaller time frame in that direction...If you trade against the trend you will lose your hard earned cash for sure.
Like i said open 2 accounts if you are brave. Posiotion trade one and day trade the other. Pick your poison and ride the waves.....If you wipe out get back on your board and catch another wave.
See Ya
|