Posts Tagged ‘medium-term trading’

27.10.2010 Post in Trading

Forex trade should be based on a sophisticated trading strategy. Of course, the main trading principle remains the same – buy cheap, sell expensive. Profitability of your trade depends not only on right predictions of a market movement, but also on your ability to work out an effective strategy. The strategy designed completely by the trader is the only kind of strategies that can effectively work for him/her. It implies accurately planned actions that rely on market trends.

There are 4 types of strategies – long-term, medium-term, short-term and supershort-term.

Medium-term strategy suits those traders who cannot permanently follow market changes. The longer the strategy period is the less risky it is, but the more money it requires to deposit.

Medium-term trading supposes positions being opened for the period from one day up to one week. Proper correlation of deposit and margin allows the trader to avoid almost any risk.

Medium-term trading is the most popular type of Forex strategy as it unifies Forex newcomers and
professional traders.

For successful Forex trading it is useful to carefully choose a trading strategy and stick to a logical and rational approach.

Added by Alexandr Kornilov,
InstaForex Clients’ relationship manager