Medium-term directional forex trading
Friday, June 26, 2009
Medium-term positions are typically held for periods ranginganywhere from a few minutes to a few hours, but usually notmuch longer than a day. Just as with short-term trading, thekey distinction for medium-term forex trading is not the lengthof time the position is open, but the amount of pips you’reseeking/risking.Where short-term forex trading looks to profit from the routinenoise of minor price fluctuations, almost without regard forthe overall direction of the market, medium-term tradingseeks to get the overall direction right and profit from moresignificant currency rate moves.
Almost as many currency speculators fall into the mediumtermcategory (sometimes referred to as momentum tradingand swing trading) as fall into the short-term trading category.Medium-term trading requires many of the same skills asshort-term trading, especially when it comes to entering/exiting positions, but it also demands a broader perspective,greater analytical effort, and a lot more patience.
Almost as many currency speculators fall into the mediumtermcategory (sometimes referred to as momentum tradingand swing trading) as fall into the short-term trading category.Medium-term trading requires many of the same skills asshort-term trading, especially when it comes to entering/exiting positions, but it also demands a broader perspective,greater analytical effort, and a lot more patience.
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