Trading on short-term periods in Forex market is often considered to be a more popular practice than long-term trading. In short-term trades, your positions usually do not last longer than a day, while in long-term trading, they can remain open for years. Although I prefer to trade using the long-term charts and to hold my positions open for longer periods of time, I admit that short-term Forex trading has its advantages:
This is what you get if you like to trade inside the day and use such techniques as breakout trading, scalping, news trading, range trading and any other short-term strategy. Of course there are also some disadvantages in short-term trading, but they are not the topic of this guide. Short-term Forex trades are pretty tempting for a new trader, but their risk is in their volatility. If you can set a reasonable stop-loss and still make money, that is the best possible situation to be in on the short front.