While scalping can certainly teach you to trade the currency market, it takes a lot of time and effort. When you scalp, you have to sit in front of the computer for long periods of time.
Positional trading is an interesting way to trade Forex online. While it can take you only a few hours a week, it can provide you with quite extensive profits.
So how does positional trading work?
Positional trading is all about having your positions opened for a long period of time, so you can catch some large market moves. The rule of thumb is to avoid using high leverage and keep a close eye on the currency swaps.
Sometimes these swaps can cost you more than your actual profit.
With positional trading, you can learn not only Forex trading strategies but also the skills you need to become successful. It is a good method of achieving high profits, but it can also put your emotions to test.
Traders may feel the stress from having their funds affected by short term moves. Quite often, traders will have to fight the urge to close their trade when it’s losing points.
With positional trading, you have to dedicate your time to analysing the market and predicting potential market moves. However, there is almost no time spent on the execution of your trading strategy.
Simply start by picking up the pair you know the most about. Calculate the possible volume of your transaction, see what the swap is and how you can break even, analyse the best moment to enter the trade.
And when this moment comes, go for it.