Thursday, March 26, 2015

Medium-term directional trading

Medium-term positions are typically held for periods ranging
anywhere from a few minutes to a few hours, but usually not
much longer than a day. Just as with short-term trading, the
key distinction for medium-term trading is not the length
of time the position is open, but the amount of pips you’re
seeking/risking.
Where short-term trading looks to profit from the routine
noise of minor price fluctuations, almost without regard for
the overall direction of the market, medium-term trading
seeks to get the overall direction right and profit from more
significant currency rate moves.
Almost as many currency speculators fall into the mediumterm
category (sometimes referred to as momentum trading
and swing trading) as fall into the short-term trading category.
Medium-term trading requires many of the same skills as
short-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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