What time horizon does it take on the Forex?

What time horizon does it take on the Forex?

The question seems simple but the answer is not. It depends on your personality. Only you can know or discover on which period you feel most comfortable. For my part it is the medium term. It is on this horizon of time that it seems to me the simplest to trade. It's not risk aversion, nor disability, but simply because it's where I earn the most money. It's up to you to find your time horizon . However, the following can help you find what works best for you. There are 3 horizons of time , the long term, the medium term and the short term .

The long term :

The long term can range from a few weeks, up to several months or even years. You will use daily and weekly charts. It is the different macroeconomic data on this or that currency that will make your trade lose or win. Advantages: - No need to stay in front of your computer  - Reduced transaction costs (few orders placed)  - Your mood of the day is not dependent on the market (low stress) Disadvantages: - Stop-loss far away to avoid being executed on a market correction  - It takes patience  - Requires large funds to support large movements  - Frequent weekly and monthly losses

The medium term:

The medium term can go from a few hours to several days. You will therefore use hourly graphics. It's the trend of the week that will make your trade lose or win more often Advantages: - More trade opportunities  - Less chance of losing over a month  - Opportunity to diversify your portfolio Disadvantages: - Costs of important transactions because more trades are carried out  - Overnight risk  - Need to regularly watch the evolution of the market  - Important stress

The short term:

The short term can range from minutes to hours. You will therefore use minute graphs. It's your ability to spot chart patterns that will make your trade lose or win more often. Advantages: - Multitudes of opportunities  - No risk overnight  - Result of trade very quickly known Disadvantages: - Huge stress  - Need in significant time  - Limited profits (loss too)  - Significant transaction costs (many orders passed)

Conclusion:

As you can see, no time horizon is perfect but there is one that suits everyone. It's up to you to find it. To better know you play with a demo account on different periods ( the long term may be a little long ... but if you see that the other two do not suit you is that you are made for the long term. Many people plant royally and lose a lot of money because they want to win too fast. Everyone is not made for the short term . You will be able to win as much by playing in the long run as by playing on the short term