Strategies for Successful Trading Decisions – Going Short or Long

[sakura]

 

The Forex market is quickly becoming the focus of attention for millions of new entrants as a result of its unique advantages. A large number of people have learnt how to make clever investment choices in order to take advantage of the market. Two strategies in Forex are going long and going short – once you understand these two strategies you will be able to make important decisions in order to be profitable. The two main strategies will be examined below.

Going Short

This trading strategy is when the base currency is sold in order to buy it at a later stage when the price begins to fall, resulting in a return from the transaction. For example, if the current GBP/USD is 1.5345 meaning we pay 1.5345 Dollars for one Pound Sterling, and we have $1000 dollars, we would sell the Dollars in order to purchase the Pound Sterling. This is carried out when the cost is expected to fall again in a short period of time. When the price GBP/USD falls to 1.5350, this means that more Dollars can be purchased with the same amount of Pounds that were obtained at the start. The additional dollars can be kept as profit which were earned by considering the dollar as the base currency.

Risk in Short Position

As with all financial markets, forex involves the same amount of risk. If the prices go in the exact opposite direction than originally expected, there will be a loss instead of a profit. For example, if the GBP/USD goes to 1.5340, you would not even get the same amount of Dollars that you sold initially. This strategy is only profitable if prices drop.

 

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[Cecil Marshall]

Various things are there for successful forex trading. One of the basic one is securing fitting learning as trading is a work of master. Another is managing your risk capably. There are some more basic things to take after which are incredible strategies, great trading plan, and picking the correct broker. You can not get great result of course by trading in a poor broker. I trade forex at FXPM broker. I am in this broker since it is a regulated broker and gives astounding support.

[Mehraj Hossain]

Forex Scalping a trading strategy used by forex traders to buy a currency pair and then to hold it for a short period of time in an attempt to make a profit. A forex scalper looks to make a large number of trades and earn a small profit each time. Several strategies are being used in trading by the traders. With Trade12 I have the best and favorable environment for scalping indeed. Their smooth trading platform, smart bridge technology, high leverage, superior fast execution always help me in earning ore and more.

[Willem Hesselink]

The Forex market is rapidly turning into the concentration of consideration for many new contestants because of its one of a kind points of interest. An extensive number of individuals have learnt how to settle on shrewd speculation decisions keeping in mind the end goal to exploit the market. This trading methodology is the point at which the base currency is sold so as to get it at a later stage when the price starts to fall, bringing about an arrival from the transaction. 
I exchange forex at Forex4you broker. I am in this broker since it is a directed broker and gives bewildering support. Forex Scalping a trading methodology utilized by forex traders to purchase a currency combine and afterward to hold it for a brief timeframe trying to make a benefit.