What is an ideal short or long trade? Could someome please explain this using pips? For example, what is an ideal number of pips for take profit for a short and long trade, and stop loss for a short and long trade.
Hi, there is no such thing as an ideal value for short or long trading. How you build your strategies is up to you, both long and short positions can be profitable. Regards Greg
An ideal long trade is one where the price has increased after you bought it and you sell at a higher price.
An ideal short trade is one where you sold at a high price and managed to buy back at a lower price.
The number of pips is really irrelevant and purely dependent on your trading strategy.
The ideal place to set your stop-loss is where the reasons for entering the trade no longer apply. your technical analysis of the chart should give you both the reasons to open the trade and the level at which its no longer a good idea to hold on.
A more difficult task is to identify where to exit a profitable trade. Again, the TA should help you but it will be less clear than identifying your SL. You might need to let the chart develop after entry before you have enough info to set this level.
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Long trading is a good and great way to make a big profit but if you want to profit in a short time then you can trading with a scalping strategy. But before starting any kind of trading you must have good and postive sterategy and plan.
There’s no ideal long or short trade. You enter a long when your TA tells you that price will go up and enter a short when your TA tells you that price will go down. Then as for TP and SL that would depend on what you would want to implement for your trades.
Short term forex traders if you ask me have a disadvantage merely because they trade more and have to come across the spreads more often.
Let me put it this way. If suppose you’re trading the EURUSD and want to make a 1000 pip profit, as a long term trader, you can just move one trade that would move 1002 pips considering the spread is 2 pips. That’s the basic difference.
A short trading means that you sell the asset and expect that it’s price will go down and you will earn money for this. Long trade means that you buy an asset and expect that the price will rise and you also will earn money for this. Some traders, beginners of course, always confuse terms “short, long” and “short-time, long-time”. Short-time trading means that your work timeframes isn’t excel 1 day, while long-time trading means that you buy an asset and expect that it’s price will rise in one month or in couple of years. Long-time trading is also known as investing. There is a medium-time trading, it means that your work timeframe varies from 1 day to 1 month (maybe 1 week).
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Thanks for useful information!
It depends on your purposes. You initiate a long trade when you buy an asset with expectation tha you will sel it at a higher price in future and make a profit. A short trade is initiated by borrowing an asset to sell it with the intent to repurchasing it at a lower price, take profit, and return shares to its owners. I believe that long trading is for people who are not searching for money right now, it can help you to provide yourself with accumulations in future. Short traders can make money faster but they often have to come across the spreads. I guess these are the main differencies btq short and long trading.
In day trading, “long” and “short” trades refer to whether a trade was initiated with a purchase or a sale. In a long trade, you purchase an asset and wait to sell when the price goes up. When you’re in a short trade, you borrow an asset, sell it, and hope to buy it back when the price goes down.
In day trading, “long” and “short” trades refer to whether a trade was initiated with a purchase or a sale. In a long trade, you purchase an asset and wait to sell when the price goes up.
When you’re in a short trade, you borrow an asset, sell it, and hope to buy it back when the price goes down.
As you are live trading, you need to understand that there is nothing like an ideal aspect in forex trading. It is all about finding a way that works best for you.
I’m sure you’re trying to help but that’s not what happens in private retail forex trading. There are no assets to purchase or borrow and there is no purchase price or sale price.
In any case, the thread is asking for advice on trade planning, not for a definition of “long” and “short”.
One of the differences between the long and short trade is that in long trade you buy the asset whereas in short trade you borrow an asset and sell it.