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Forex Trading Periods
You have entered the forex market because you want to make some money. Since the market is always fluctuating, the period for which you trade and keep your holdings is critical to forex trade. Even the duration for which you keep your holdings is vital and plays an important role in the scheme of things. But how long should you hold and what should be the volume and frequency that you trade in any particular day? This depends on an array of factors.
To begin with, the market conditions the swings and the trends in the market will determine your trading period. A small or an average forex trader trades up to ten times a day. The frequent trading in a span of one single day is encouraged by the fact that there are no commissions to be paid on each transaction, unlike the stock market where every time you buy or sell the shares you have to pay a fixed commission to the broker. But this is not the case in forex trading. Here you may trade as much as you want; there is no commission to be paid to the dealers. Thus you may take as many long or short positions as you wish. It doesn’t affect your transaction cost in any way.
Generally speaking a person keeps his holding till he realizes sufficient profit on them. He may also maintain his position till his stop loss is triggered or there is another more attractive potential in the market and the person concerned wants to release his funds for another lucrative deal.
Before you start forex trading it is strongly recommended that you first open a demo account and practice to get a feel and the hang of it. Other wise you may end up making serious mistakes. After all there is nothing better than practical experiences.
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