Though most traders are now using short term trading strategies in foreign exchange trading, there are still a lot of traders who prefer to use long term trading strategies such as End of Day forex trading. This type of trading strategy is especially useful if you have a regular job and could not afford to sit in front of your computer, monitoring the market movement all day long. Since this method of foreign exchange trading requires your bets to stay for days and even weeks and months, you also have fewer transactions made. This means that you would have to deal with less transaction costs. This is not to say that the transaction fees in End of Day forex trading are lower, for both have the same amount of fees. The difference for the two strategies is if you do long term foreign exchange or currency trading, you actually make fewer transactions. Since there are considerably fewer transactions made, the transaction cost would not have to be multiplied by a big number.
It is safe to say that you can indeed save a lot by using this trading strategy. You would benefit from this strategy not only by cutting down some of the trading costs, you will also be able to save time. Though it is true that it will take a longer time for the profits to come to you, you can be sure that it will be bigger once it gets to you. Because the trades are long term, it means that the trades have more time to expand. The longer you keep your self in the race, it is more likely that you would win more. You may encounter more risk of losing by using this strategy but if you have been trading in foreign exchange for a long time, you will surely find this strategy useful. Only if you have the right knowledge and skills needed in foreign exchange trading, you would be able to use this trading strategy and actually produce great results. Those who are still new to trading and still have not gotten enough trading experience should stick with short term trading strategy first.
End of Day forex trading is perfect for those who could handle it but if you are not the type who could wait patiently for the money to come, you might find it hard to make this strategy to work for you. Choosing a strategy in trading is always dependent on the traderís personality, for no matter how effective a trading strategy is, if it does not work well with the traderís personality, it would not bring any positive results.
Finding the best trading strategy is also dependent on the forex trading system being used. If you were able to find a trading system that works perfectly for you and it specializes on a specific trading strategy, you should stick with that system and that strategy. If it uses End of Day forex trading, then start understanding how it works and expand your knowledge about this strategy. That way, you will be able to make the most out of the strategy and earn so much more.
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