How to go Long and Short

Forex Trading Nigeria

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Posted by on Thursday March 1, 2012 16:41:49:

Most forex traders try to make a profit by buying when low and selling when high or maybe ten pips.
Going LONG
When you buy when prices are low in order to sell when it goes high, it is called going Long. You can still make money in Nigeria using that method
Now what about making money even when prices are falling?

You can do that by going short or short-selling. This means that you buy when prices are falling in order to buy when it is low. In this case, you are selling first in order to buy after the fall. This is also a profitable way to trade forex.

Going LONG and SHORT at same time
Can someone actually trade in the two opposite directions at the same time? Well yes you can. This is a form of hedging in case you feel that your current position is going bad or you are just unsure of which price to enter at. Trading in an opposite direction can help reduce your losses in case your speculations go bad as it helps you to follow the trend in order to know which side suits you better.
For instance you buy into EU pair at 1.3400 and prices starts falling to 1.33980. You immediately decide to create another position by selling at 1.33980 with the same quantity. This will somewhat reduce or neutralize your earnings in the first position and you can still profit from both sides.
Trading in both directions is also good in times of flunctuating prices as you will be able to close both positions quickly and profit from both especially if you set stop profit points for the up and downward price movements.