If John Maynard
Keynes had been a Forex trader, he may have been one of the best short-term
traders because of his preference for immediate action. As he was an advocate
of proactive fiscal measures to combat severe economic imbalances, he is also
likely to have preferred the benefits of short-term moves in the Forex instead
of the long-term trends in the midst of global economic uncertainty.
Long-term trends
in the Forex market – lasting at least 2 weeks – tend to smooth out the
short-term volatility and allow the trader to benefit from larger ranges. They
also provide a larger cushion for losses given the wider Risk-Reward ratio and
give the trader a lot more time in between trades to analyze the market.
However, the commitment to this approach assumes a high level of accuracy in
the traders´ forecast based on technical and/or fundamental analysis- an
accuracy beyond that of the average full-time trader.
Such a trader,
who depends on the Forex for his immediate financial needs, is likely to prefer short-term certainty. Thus, choosing the longer term trends, though
more profitable per trade, would introduce an unnecessary amount of dependence
and pressure o…
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