Scalping is profitable in the short term by getting an investment return at a reasonable speed (3 – 5-7 months). However, in the long term investing returns become negligible since the initial investment is not worth it even in the long run. I have had my fair share of losses due to forex selling in this period, mainly due to the market manipulation. As a result of the market manipulation in my opinion, the gains I made for forex selling is extremely small in my opinion (1 – 2-3-4-5-6 month averages). I would not do it again. In this blog post, I will focus on investing forex from a trader’s point of view.
The main goal of this blog is showing how to make money by trading. However, before you go, I would recommend you to read Understanding Forex trading. For many beginner traders, Forex is not an attractive way to earn money without good fundamentals.
So how can you invest forex to make a quick profit?
The most important tip I give here is that it is important to keep your trading strategy in mind during the investment strategy. Trading based on intuition and not logic is not a good strategy. It will produce short-term profits at best, though it will cause losses over long period. For example, let’s take a simple example: You have $1,000 invested in a $350 stock which you are holding for the long term. It has been selling at its peak price, but in the meantime you have made lots of money. In this example you are betting on the stock’s future price which is likely to be in the low 2-3% range.
If the stock price is in the 3% range, you would sell and keep $450, whereas if you are just getting started, you would hold 2-5-10-100 to earn the necessary $1000 in the short run. It gets boring very quickly, don’t you think? It could be even better by making a large profit by buying a short-term stock from the market. I think you get the picture right?
The most important thing is to stick to a trading strategy. In the long term even if your strategy is incorrect and your trading account is destroyed, you would still make a decent return when trading stocks like this.
You should also keep in mind the fact that many traders make their money from forex trading. What if you have a trading account and you only trade
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