Trading is a bit like playing games-fast and thrilling like Jenga, or slow and strategic like chess. Short-term trading is all about making quick, well-calculated moves, while long-term trading requires patience and strategy to win in the long run. So, which style suits you best? 

Let’s break it down.

Short-term trading: The fast-paced game

Short-term trading means buying and selling assets within a short time-sometimes minutes, sometimes days. Think of it like riding the waves, using market trends and technical analysis to catch profitable opportunities. This approach requires sharp decision-making, discipline, and an eye for patterns.

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Key ingredients for short-term success:

• Market knowledge – Stay updated on economic events and trends.
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• Technical analysis – Use indicators like RSI and moving averages to make informed trades.
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• Risk management – Set stop-loss orders to control potential losses.
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• A solid plan – Define your entry and exit strategies and stick to them.
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• Discipline – Keep emotions in check and don’t chase losses.
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• Technology – Leverage trading platforms, tools, and automation.

If you’re looking to dive into short-term trading, Deriv offers multiple platforms, including Deriv MT5, cTrader, and Deriv X, to help you execute quick trades with real-time market data.

Long-term trading: Playing the long game

Unlike the rapid-fire nature of short-term trading, long-term trading is about patience and big-picture thinking. Investors hold positions for weeks, months, or even years, relying on market fundamentals rather than daily price swings. This strategy is ideal for those who prefer a steady, calculated approach.

The essentials of long-term trading:

• Fundamental analysis – Study company performance, industry trends, and economic conditions.
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• Patience – Stick with your investments through market ups and downs.
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• Diversification – Spread investments across different assets to reduce risk.
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• Regular reviews – Check in on your portfolio and adjust if needed.

For long-term trading, Deriv’s MT5 swap-free accounts allow you to hold positions longer without swap fees, making them more cost-effective. Just keep in mind that after a five-day grace period, an administration fee applies.

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Short-term vs. long-term trading at a glance

Your next move in trading

Whether you're drawn to the thrill of short-term trading or the slow, steady path of long-term investing, Deriv has platforms and tools to support your strategy. If you're unsure where to start, practise risk-free with a Deriv demo trading account before going live.