If you consider financial markets as a part-time activity to gain extra revenue, short-term trading strategies seem to be the most suitable. The technique's name speaks for itself. It means that a trader benefits form smaller price movements within a shorter period that may vary from several seconds to a couple of days.
This speculative trading style has become very popular with both beginners and pros. It lets you trade multiple assets at the same time, which means more positions to open. Unlike longer-term strategies, this one does not require in-depth analytics to consider historical trend movement although market analysis is still necessary.
Despite the fact, short-term strategies seem to be easy to apply, they are not recommended for newbies. Are they that risky? What are the fundamental concepts? Let's find it out.
Also known as active trading, short-term trading strategies consider positions lasting from a few seconds to several days. It appeared to be a more engaging alternative for traders who do not want to spend weeks or months waiting for the price to move.
Here are some crucial factors that make it simpler to understand how the techniques work:
To make the most of this particular trading style, you need to find a trusted trading platform with suitable market conditions. The best bet is to opt for brokers that provide assets at their real current cost. It will let you benefit during the crisis and make substantial wealth on the falling market prices.
Now, it is high time we defined the key instruments you will need to get started with a short-term trading strategy.
If you think this style suits you fine you will need to follow several vital steps before diving deep into the financial market:
Let's have a detailed look at each of the above-mentioned issues.
So, the first thing you need to do is to define what type of short-term trader you mostly refer to. There are three major options:
After you have figured out what type of trader you are, you need to select the most suitable asset to trade. This is where you will need to explore and examine different markets. They are the same as for any other type of trading strategy. You may choose from Commodities, Currency Pairs, Shares & Stocks, Forex, Indices, etc.
Forex is the most popular market to use short-term strategies. It is popular for high volatility. Besides, it is available round the clock 5 days a week.
You should note that a trading strategy is not a magic formula that guarantees success. It is mainly a methodology based on particular data and market actions. Picking the suitable strategy will define the best time to enter the market. It outlines when you are going to trade.
There are 4 baseline short-term strategy types:
The best idea to define, which strategy type of your cup of tea, is to open a free MTrading demo account. It ensures risk-free practice. You will be able to work out a winning short-term trading strategy that works without losing your cash.
Once you are ready to enter the real financial market, open the LIVE account, and start your successful trading.
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.