If you thought trading short term in the Forex market is moving at lightning speed, then you will also be surprised to know that even a medium term trading strategy can still move at the speed of sound. The time frames in which trades occur even using this strategy will range anywhere from a few minutes to a few hours. Just as in short term trading, the key element or distinction for medium trading is not the amount of time the position is open, but the amount of pips you are looking for and the associated risk in holding for those pips.
Significant currency rate shifts in the medium term Forex trading
As short term trading is looking to gain from routine price fluctuations, medium term trading goes one step further by considering the overall direction, getting that right and profiting by larger and more significant currency rate shifts. A medium trading strategy by the same notion recognizes that markets rarely, if ever, move in one direction for extended periods of time so medium term traders approach the market with well thought out and designed entry and exit strategies already in place.
The essence of a medium term trading strategy
The essence of a medium term trading strategy is formulating an informed decision about where a currency pair is likely to move over the course of several hours, or potentially days, and assembling a strategy to take advantage of that view or opinion.
Skills required in medium term trading strategy in the forex
A medium term trading strategy in the forex requires many of the same skills or skill sets as a short term trading strategy, especially with regard to an entry and exit strategy, but it also requires a much broader perspective of the market and more qualitative analysis and patience in achieving the desired outcome. There are probably as many medium term traders as there are short term traders and often, depending on how comfortable you are in the currency markets, you can do both as each strategy encompasses many of the same attributes from a trading perspective.
About this article Medium Term Trading In The Forex :
| Date | December 27, 2009 |
| Trade The Forex Category | Forex Trading Strategies |
| Comments | 1 Comment |
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[...] faire ou ne pas faire, les différentes stratégies pour gagner: une stratégie à moyen terme (Medium Term Trading Strategy) ou plutôt une stratégie à court terme (Short Term Trading Strategy). Un bon moyen préconisé [...]