“Short-Term vs Long-Term Trading

 > Explanatory Article by Marios Kyriakou, MSc Economics


About the author: Marios Kyriakou has a bachelor’s degree in Economics from the University of Cyprus and a master’s degree in Economics from the University of Warwick. He is also a holder of CySEC’s Advanced Certificate in Financial Services Legal Framework and a professional in Online Trading, Forex and CFDs with more than 7 years of experience.

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<Last updated 26.04.2020>

Dear reader,

Hi! If you are interested in online trading you should think carefully before you trade and take into consideration the below article where I explaining how short-term and long-term trading differs when thinking about strategy.

Short-term trading refers to those trading strategies in which the lifetime of the trade is within a range of few days to few weeks. However, it can also refer to a period of just a few minutes of hours, within the day that is > Intraday trading.

In this case traders care more about:

-Breakouts

-Retracements

In such cases of breakout, the trader tries to take advantage of the rapid price move after the breakout and soon closes the trade within minutes.

Other trades last longer but still within the day such as the below:

– Fibonacci retracement levels only after a confirmed shock.

– Use Fibonacci Expansion >> Correctly identifying the levels

 

The market is influenced by the information investors and traders have available. This information is provided by various sources. The media can be very powerful since the majority of people are observing and analyzing the information provided to them by global leaders in business and financial data such as Bloomberg and Reuters.

Long term opportunities to trade arise in markets that are heavily influenced by the news. Fundamental analysis has to be implemented greatly when there are macroeconomic factors changing that affect the markets.

-Worldwide coordination through the media is possible

-Make sure that you are able to identify changes in trends

Example below:

Market in the Long-Term is driven and boosted by the news. In this case news on brexit deal are causing volatile markets and long term trend to form. The Brexit news where pushing the GBP higher and higher.

It takes unpredictable Shocks for trends to change .


 

“I hope I am clear on this one. If not, contact us on social media and we will do our best to help you.

Thank you for reading my articles and watching my videos.”

Marios Kyriakou

Disclaimer: This article is intended for educational purposes only and does not replace independent professional judgement. Its purpose is to act as a complementary educational service to society, promoting personal development and social, economic and cultural progress of citizens. While this content has been prepared in good faith, no representation or warranty, express or implied, is or will be made and no responsibility or liability is or will be accepted by the creator to the accuracy or completeness of the information presented or any other written or oral information made available to any interested party and any such liability is expressly disclaimed.
Risk Warning: Trading in Forex and Contracts for Difference (CFDs), which are leveraged products involves substantial risk of loss as there is considerable exposure to risk in any off-exchange transaction, including, but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of the markets that you are trading. You should carefully consider your investment objectives, level of experience and risk appetite before making a decision to trade with us. Most importantly, do not invest money you cannot afford to lose. It is possible to lose all the initial capital invested.

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