With other trading options you have to predict the movement of an asset by expiry time. However, with Long Term trading you can have the choice to make predictions over a larger timeframe.
Instead of the same expiry time as with other trading options; in long term the expiry times are end of the following day, end of the day after the following day, end of week, end of month and end of quarter, and so on. You can even predict the movement of an asset from the next day up to one year.
It’s really not that different from trading; the same rules apply; choose the asset, the amount and the direction that you believe it will move in. The only difference is that expiry times of assets are not on the same day. When trading for Long Term, taking into account the macroeconomic environment and basic fundamental indicators will help you a long way.
Benefits of Long Term Trading
More Straightforward. The primary advantage of a long term trading is that making a prediction is more straightforward. Making predictions for short term has its risks; the market can become volatile without your knowing it. By waiting longer the asset has time to respond according to established and observed trends.
Lower Risk and Greater Returns. The longer the time period the more stable an average return becomes. This means you are more likely to place profitable trades, that is assuming that you based your trades upon solid market analysis.
A Challenge with Big Payoff. Long term trading is also ideal for more experienced binary traders. If you happen to be one of these you can also take advantage of your knowledge of financial markets.
Informative in the Long Run. If you want to have more experience as a trader this can also be a good option for you; it can teach you appreciate the long term view of the development of any market.
Long term means investors have more time to study markets and conduct more thorough analysis and in the end make professional and educated forecasts. A long term view also gives you time to improve your trading strategy.