Author: Alexander Vladimirov
In this article we're going to take a look at some of the questions you should be asking yourself in order to decide how you want to approach the market - long-term, short-term or maybe even both.
How much time do you have for trading?
Are you somebody who has to work a 9 hour shift and also has to spend 1 or 2 hours in traffic on a daily basis? If this is your case, your trading time will be limited and thus you would need to maximize your efforts during your chart time. One solution here would be to pull up a weekly fundamental calendar and only highlight the key high impact events. Once you do this, you will be able to know at exactly what time you can expect a movement to happen, organize your day so that you can have 30 minutes available and use a scalping strategy to make your profits. If you try to trade long-term, it might be difficult for you to have your eyes on the market once a reversal of the current trend and start of a new one starts. Having a good entyr is always important, especially in long-term trading. Evestin Forex will have a new trend trading robot which is currently being tested and will be available by this Autumn.
What is your Goal?
Obviously, everybody’s goal is to profit from the markets, but in what way? Would you be happier knowing you’ve taken a certain amount of pips per day, or are you happy to wait for a larger movement, and thus a larger profit after a longer period of time? This is something you have to ask yourself. If you rely solely on trading as your main income, you might want to feel the security of taking profit every day, but if you can afford to wait, a longer trend might be more rewarding for you and less risky at the same time. Longer trends are generally less risky because you can place your stop loss at break even, if you have a good enough entrance, and not think about it anymore.
Do you like trading?
Trading is a skill that can bring you more money than most other professions or crafts out there. This is why so many people give it a try. But it’s true that trading isn’t for everybody. If you are someone who doesn’t enjoy analyzing charts very often, but still want to get the financial benefits from it, then automating your trading with robots such as the ones offered by Evestin Forex would be a good solution for you.
The SWAP secret
This is a secret not many people know or take into account. Some people who know about swap don’t really think too much of it, but it can really add up over time. The swap secret only works for long-term trading, and it’s one of the tools hedge funds use to turn out on profit at the end of the year. This also is only worth it if you have a large enough account. A forex swap rate is defined as an overnight or rollover interest (that is earned or paid) for holding positions. The swap can be negative or positve. You have to research which way (buy or sell) is positive for you before entering the position. Different brokers have different swap rates, so you need to check with yours to find out, but an example of this working well would be the following:
Currency Pair: EUR/USD
Trade Size: 10 lots
Positive SWAP on Sell: $44.28/Day
If you combine this with a good technical analysis, you can imagine something like this:
As you can see from the screenshot above, if you catch the break of the range/consolidation on the daily chart on EUR/USD on 26/04/18, then you would be looking at approximately $3,000 in profit on the day this article is published (04/07/18). This is only for a 2 month period!
At Evestin Forex we understand that you might not always have the time or means to trade the markets, whether it’s short-term or long-term. This is why you will make your life easier by automating part or all of your trading. Sign up now to try our Automated Trading Systems free for 30 days!