Foreign Exchange Trading Types

• Long term trading has a yearly trend
• Medium term trading has a monthly and / or quarterly trend
• Daily trading has a weekly / two weekly / three weekly trends

You must take careful note of the trends because a trader will never go against them. Once you are able to identify trends the next thing you will notice is that the market does have days that are considered as bad. In fact there are more bad days than people imagine. There are different kinds of traders and they are intra-day trader, long term trader and medium term trader. Each category of trader will experience days that are just so bad that trading cannot take place.

This can go on for days or months at a time. You have to sit it out and wait for the trend to change. It is for this reason that you must make a decision to trade a certain amount of money a day. If you go against the trend you are going to lose money. Experience will help you to make the right decisions on the days that are good and in this way you will make up for the days that are bad.