What Are The Advantages Of Creating A Long-Term Forex Trading Strategy?

A major reason why so many people are drawn to forex trading is because the volatility of the currency markets makes it possible to trade the markets on an intraday basis. Indeed a lot of people generate some decent profits from day trading the forex markets, but my own view is that you should always focus on finding a profitable long-term trading system as well.

With regards to the forex markets, long-term trading generally refers to trades that last anything from a few hours up to a few days, weeks or months. However I personally think that if you use the 4 hour charts and upwards, then you can regard yourself as a long-term trader.

In my opinion if you only concentrate on taking short-term intraday trading positions, then you are taking undue risks and are missing out on lots of profitable trading opportunities. Of course it's possible to make money trading the 1, 5 and 15 minute charts, for example, and I've been known to trade these time frames myself on occasions, but it's generally a lot easier to trade the longer time frames.