Is the long term gold or the short term gold?

We often see a trading pattern that repeatedly emphasizes "buying to sell", because this is not only the essence of modern financial marekt, but also the reason why foreign exchange margin trading has vitality. In foreign exchange knowledge, what is "buying to sell"? The literal understanding is that only those who sell well can buy, and only those who are designed to sell well can come to the market. And the deeper meaning is: only financial products that are suitable for short-term speculation can be bought by more people, and the trading model designed to facilitate short-term speculators (speculators) can be more vitality. The foreign exchange margin trading model is a trading model that is particularly suitable for short-term trading or short-term speculation (of course, it is also possible to do medium and long-term trading).

There are many.foreign exchange marketAnalysts and traders at financial marekt or virtual financial marekt disapprove of short-term hype - and not just because investors who oppose speculation, especially in the stock market and real foreign exchange, prefer to cover the strategy, the so-called "die and don't sell".

However, if we also adopt this "dead even" trading strategy when doing margin trading, we may lose a lot of opportunities. The key to this truth is that we use margin - the method of enlarged capital leverage.

For example, we buy 1.35 million yen at the price of 135, we need $1,000 in the case of a real offer, and only $10 in the case of a 100-fold increase in margin. On the contrary, I use $1,000 to buy 1.35 billion yen, in the real deal. Every 100 points up and down, my profit and loss is $1I, and in margin trading, every 100 points up and down, my profit and loss is 50% of the principal - $500. In the case of a real offer, usually $10 won't position squaring, because there is little left after deducting commissions (or even not enough commissions); however, in the mode of margin trading, investors with $500 in earnings will generally position squaring, even after deducting $10 in commissions (often not so much), there are $490 in earning. relative

On the contrary, if you are looking in the wrong direction, you should have taken measures without 100 points, or stop loss, or hedge, and in the case of real trading, investors will be very numb. Since the above process of 100 points fluctuations occurs almost every day, it will occur on almost all currency pairs. Therefore, real investors are used to doing long-term, while margin investors have to do more short-term. Moreover, for the sake of preventing risks, margin trading is also more suitable for short-term trading.