While long-term investors focus on the intrinsic value of assets and
allocate capital on long-term value, short-term traders pay attention to
opportunities in the near future. However, long-term investment is not
suitable for all. This paper has listed some reasons why you have to
consider short-term trading.To get more news about
WikiFX, you can visit wikifx.com official website.
Market Cycles
Long-term investors may not adapt to the market cycles. On the
contrary, short-term traders could make decisions in a short period of
time, as well as enter and exit the market based on the trend direction.
Uncertainty
Markets are difficult to predict. Despite potential profits,
long-term investment also brings about various uncertainty. But day
trading could reduce uncertainty instead.
Capital Requirements
Long-term traders need lots of capital to start investing. But for the average traders, the capital required is more flexible.
Necessary efforts
To be a successful long-term investor, you need to present your
views to company management. Meanwhile, you have to get some media
contacts to make sure your views will be heard by the management. All
this is too hard! Short-term traders never need to make such efforts.
Another reason for choosing short-term investment is the
opportunities you can capture when trading. Long-term traders are unable
to change their loyalty in a matter of minutes, but short-term ones
could find out opportunities at the time.
Download WikiFX (bit.ly/wikifxIN) to get lessons from experts who have traded forex for over 20 years.
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