You might be wondering why Mr. Andre of Forex Jed is covering this content and wrote that short-term forex trading is a waste of your time? Well, simply because I had been experimenting to scalp the market for two months where I have to be constantly watching on every move of my chosen forex pair and the result was not as I wanted but if you fit with short-term trading, you could just continue it because not everyone fits with short-term trading. So, basically, this is based on my personal experience in short-term forex trading.
Before you delve and read more below, I have no intention to attack short-term forex traders who consistently profit from the forex market as here I only share what I have experienced. So, if you are suitable to be a short-term forex trader then you could stick to your short-term forex trading. However, if you are a beginner and want an illumination of the title above, feel free to read the reasons below here.
You Have To Constantly Watch The Market Where You Could Use That Time To Do Other Productive Activities
Imagine you trade your free time for trading where you could improve and learn other skills that correspond with the development of this world. It is like you are living for trading. Say, for example, there is this NFT a.k.a Non-Fungible Token that is currently booming because of Ghozali from Indonesia who suddenly become a rich person after he sold his NFT full of his selfies. This means there are many opportunities ahead that are waiting for you to be discovered so it is better not to sit around and take those opportunities.
Well, I am not saying you should change one field to another field of knowledge but just in case the world changes you already know how to survive from what you have learned by developing other skills that might be useful for your future. In short, you could use your free time by trading long-term the forex market while you learn other skills or even improve the skills that you already have.
You Have To Be Able To Withstand The Psychological Pressure
Trust me, the psychological pressure of short-term trading in the forex market is so high and there is a high chance that you would get played by your own emotions which are integral parts of trading psychology. Aside from that, in the forex market, you compete with big boys such as big institutions, big banks, big companies that could move your emotions like a roller coaster.
So, if you are a retail forex trader, then you have to be aware of the news that would occur to a specific currency where usually before and after that news is released then the specific currency would move significantly like "whoosh" you could profit fast from it also lost fast from it. Eventually, if you profit you would be happy but if the opposite happens you would feel betrayed and your emotions would play you out that wreak havoc on your forex account.
May Have The Same Performance When You Trade Long-Term
Say that you have profited consistently in six days but the next day you blow all of your accumulated profit of that six days, now what if when you trade in the long-term you have the same result of that seven days of short-term trading, waste of time, right? Definitely, yes if you ask me, that is why you could use that time for other productive activities.
Besides that, my perspective in long-term trading is that you would have a higher chance to have more stable psychological conditions because this is like delayed gratification where you are patient enough to reap your reward later to get a better reward while in short-term trading is like instant gratification where you get a "chance" to get money (as well as do charity to the forex market) every day but cost you your valuable time.
Conclusion
Whether you are a short-term or long-term forex trader, it is just the same because we have the same vision that is consistently profitable from the forex market. From this content, do remember that this is just my point of view based on my experience experimenting to be a scalper for two months. However, if you are sure enough to be a short-term forex trader, then, go ahead and feel free to get a taste of the feel of becoming a short-term forex trader.
Written by Andre I.
Reference
Forex Jed's Original Content