The High-Frequency and The Low-Frequency Trading
The number of the trades depend on some of the factors like strategies of currency trading system and the timeframes. And especially, for those beginner traders or an inexperienced trader, they usually used the shorter time frames rather than the other time frames because for they’re always looking for faster trading actions and easy for them to use. WHILE the other hand, which is the longer timeframes that have a lot of advantages unlike the short timeframes.
This is usually used for those who are experienced in traders. Otherwise, there are two (2) principal types of the trading frequencies that can be seen in forex market. These are:
1. High-Frequency
This High-Frequency Trading does multiple trades. This is often practiced by the most retail traders in the market. The trader himself attributes for increasing the ability but not the luck. This will cause them for taking more risks in the market.
2. Low-Frequency
This Low-Frequency Trading term refers on having small numbers of the trading and it will be ended up being more profitable. It is always more profitable to go for the fewer trades. For the long-term trader, the daily chart will be providing a useful information unlike the other term. There are 3 basic trend types in the market:
- The major trends that will last more than 6 months
- An intermediate trend that will primarily are corrections of the trend in the market
- The minor trends that are very short-lived.
An uptrend on short-term chart might be the intermediate trend. In such a circumstance, the traders are going long and will ended up up losing as it shows an open door for the low-frequency traders for selling the assets.