Everybody is trying to earn some extra cash from their position. That helps with our expenses. And we get chances to spend some extra for our loved ones. Some people even try to find another job besides their main ones. They look for a job that can be operated from their home or alongside their family working schedule. In these cases, trading business comes to many people’s mind. It is a good job for making a little amount of income without spending too much time on it. Even you don’t have to spend too much on your trading account’s investment. But, if you want to make a good amount of money from it, your trading method has to be changed. In this article, we are going to talk about making more money in the trading business with higher timeframe trades.
What are the trading methods?
The methods of trading are the tendencies different traders follow for running their business. Those are based on the timeframe of the trades and the frequency of placing those trades. There are four categories of the trading method and each of them has different values attached to themselves. If we mention the timeframe of trades being open in the methods, you will be able to think out the frequency all by yourself. The first one is ‘scalping’ and it is a very busy method of trading. Trades are meant to stay open for about an hour, or a few hours. Then there comes the day trading’ and the ‘swing trading’ method. According to those ones, trades are kept life for about a day and a week accordingly. The last one is ‘position trading’. In this method, trades are being open for about 6 to 12 months. It is really time lengthy and with high-risk amounts.
The frequency of trade execution
Those who are position traders will have very few trades in a month. So, it’s imperative to have a decent balance to ensure a decent profit from each trade. Some of you might think to take advantage of the leverage offered by the Forex broker but its little bit risky. If you can start trading with a decent investment, you won’t have to use high leverage to maximize your gain. And this will dramatically reduce the risk exposure associated with your trading profession. Most importantly chose a reputed broker like Rakuten as position trader so that you don’t face any problems with low-frequency trade execution.
Which one we should choose?
Among those methods, you have to choose one for yourself. If you do not choose your own trading method wisely, your business and performance may be impacted in the long run. There are still chances to change it afterword. But, you still have to think wisely every time changing your method. If you are a really scary person and cannot handle the pressure of money, the scalping or day trading is for you. But, you should not fall for the over-trading issue. If there is no problem for spending too much time behind your trades, you can choose either of the swing or position trading. Although position trading is for big dogs who know this business really well, you can use the swing trading as your own method.
Follow your daily schedule and interest
For earning more, you have to create a good trading method for yourself. It has to be the big timeframe trades. We have already mentioned it in the title of this article. Not everyone can handle the pressure of letting their money go and being tense for it. For those people, there is nothing to worry about. Long-term trades can still make you money from small investors. But for that, you have to be regular with this method. You need to make a trading routine of your own based on the trading method. It should also follow your interest in trading on a given day.