Last update 2020.09.22
Short-term trading and long-term investing have many things in common. If done properly, they both provide great value to the investor. They may take place over different time frames, but both investing and trading seek the same goal: rapid returns.
But long-term investing can also be considered a large collection of short-term trades. In this way, a system of trades can be thought of as a single, long-term investment. If this investment controls its risk, then ultimately it will deliver great value.
What you can learn ahead
- Comparing short-term vs long-term investing
- What are the best long-term trading solution
- How to use AI to trade and take advantage of the market.
Let’s compare short-term vs long-term investing
The most important difference between trading and investing is not the selection of each trade, but rather the process of selecting trades. Most short-term traders tend to overlook the advantages of their system of trading. They don’t think of it as a long-term investment.
Consequently, they assume that the most recent trading idea that came to mind is superior to their research in finding a sound system in the first place. What most traders don’t realize is that choosing to revise the system, or skip it for a while, is tantamount to abandoning the system.
This behavior has a name. Experts in the field of behavioral finance might say that this is a display of recency bias. Recency bias is characterized by giving greater credence to events or information in the recent past simply because they are more recent.
This thinking is very detrimental to the long-term value of a trading system, especially if that system is based on a large number of short-term trades.
Consider this: a successful investment is not a straight line between entry and profitable exit, but rather a wave-like fluctuation that goes from gain to lose and back again, possibly several times. When this fluctuation is temporarily preventing a loss, it is a danger zone for investors.
But such fluctuations usually don’t rattle an investor’s thoughts about the investment because the investor expects it. They know the investment will either fail as a loss, or they will simply have to be patient and let it play out so that it can become a win. But what if they cut out of the investment early? They could potentially create a loss where one wasn’t going to happen in the first place.
Traders face the same dilemma when working with automated systems because short-term trades can be subject to losing streaks. Losing streaks represent a danger zone for traders because recency bias can drive traders to abandon the system before the compensating winning streak shows up.
One of the things Wiseinvest does to help traders take a long-term approach to their trading is to automatically define the amount to put in each trade. That way the gains, and losses, at first remain very small. By doing this you can avoid the pull of recency bias and allow the system to work in your favor so that you get the long term results you want.
The best way to trade forex
There are two ways to invest with our AI in forex:
1. Automated with AI-Trading. Check out the 3 steps to trade automated with our AI.
By trading forex automated with AI, you will save time and improve your performance without monitoring the market and managing trading platforms.
With Automated AI trading you do not need MT4 / MT5 and other trading platforms to invest in forex. All forex trades are automatically placed into your broker account every time that our AI system identifies a new worthy trading opportunity. You can monitor the AI trading performance in real-time directly on our dashboard.
Automated AI trading benefits
- Setup in 3 minutes.
- Totally hands-off, from anywhere.
- Invest from just $1.
- APY of 40% over the past 13 years*.
- Lightning-fast execution & no slippage.
- No commissions, no management fees.
- Portfolio with 40 different automatic strategies.
- No MT4/MT5 or other platforms required.
- Test with a risk-free practice account.
- Trading results directly on our dashboard.
Would you like to open a forex broker account? Our AI is integrated to trade automated with the brokers Oanda and FXCM. Click here to open an account with FXCM or here to open with Oanda. Those are some of the best forex brokers in the world.
2. Manually with AI forex signals.
Wiseinvest also provides AI forex signals that perfectly fit into MT4, MT5, and any trading platform. To trade with our AI forex signals, you must simply copy the data you receive from each real-time signal into any forex brokerage account of your choice.
There are five unique variables for each AI signal, and each must be copied exactly, in order to match the performance of the signal as close as possible.
Each AI forex signal alert consists of the following five data points:
- Symbol (forex pair)
- Direction (long or short)
- Position size (number of units or lots)
- Take profit (price level to exit with maximum gain)
- Stop loss (price level to exit with maximum loss)
Check out how to trade with our AI forex signals.
- Subscribe to a Wise-Plan.
- Open a Brokerage account. Check this article about the best forex Brokers.
- Set an amount and a position size on our Wiseinvest dashboard.
- Our AI will send you real-time trading alerts by email and Telegram.
- Copy the signals and paste into your Brokerage account.
All forex signals are sent every time that our AI trading system identifies a new trading opportunity. Our trading strategies are developed on a variety of time frames such as 4 and 8 hours.
Wiseinvest AI forex signals are Market Orders and you do not need the entry price. You can copy each signal while it is available on our dashboard. We do this way to assure that traders will just place signals while they are good to be traded.
You can trade forex with our free forex signals clicking here, or with our Premium subscription that provides you unlimited AI signals and automated AI trading in partner brokers. Whether you are a beginner or a professional forex trader, our AI trading system can help you save time and improve your trading performance. Get started with free AI.
When investing through Wiseinvest automated AI trading or AI forex signals, you do not need to calculate pips and change the leverage in your forex broker account. Learn more about leverage in forex trading clicking here.
What is the AI performance in forex trading?
The Win Rate of our AI moves as shown by the period and can reach up to 95%. The introduction relies upon the capable wild estimation metric, which infers that our model is valuable at whatever point the Win Rate is more noticeable than 60%. All methods of our AI trading system search for stable returns and sufficient results to achieve an ordinary return of 40% consistently (APY), without the usage of high impacts.
We appreciate that what is significant in forex trading is the definitive result. Thusly, the money related master needs to consider that Win Rate isn’t commonly the best estimation to measure execution in forex, as other sign providers uncover. For instance, out of 100 trades, solitary 1 trade may be an adequate disaster to make the 99 trades not gainful. For this circumstance, the Win Rate would be 99%, yet the convincing result would be unfeasible (negative).
We revolve around the appearance of 40% of APY and not just on Win Rate.
It is essential to see that forex brokers may charge spreads, commissions, and overnight costs in your trading account, and these components can impact the AI execution. You can check our forex trading history to see more about AI trading execution clicking here.
How much do I need to trade forex with AI?
You can start in forex trading with a free AI signs or AI trading record and make a store from just $1 in the dealer. It is moreover possible to test using a danger-free practice account with our AI trading structure. Regardless, in order to do a capable peril, the board in authentic records, we suggest you start from at any rate $100. Notice that some forex traders require assorted beginning stores to trade forex.
What is the trading strategy of our AI?
Our AI methodology is the blend of different AI trading structures, with more than 100 features, that portray 40 particular procedures which simultaneously consider: Quotes of the 28 forex sets, Supports, and Resistances in different timeframes, Trends and Counter-designs, Cross-markers, Index of each pair, Economic Calendar, Investors Sentiment.
Our AI looks at those fundamental, technical, and sentiment factors that impact forex trading, and all models are surveyed constantly using different burdens. In the wake of completing the examination, the choice of the sign transmission procedure is made considering the improved likelihood of flashing advantage and the total open for theory.
Using technical analysis, our count considers not simply the instances of various examples, including sponsorship and deterrent levels and cross-pointers, yet our AI is moreover prepared to make its own progressing record for each cash pair, that is used to recognize what is the best course and target.
Practically identical to fundamental analysis in forex, the AI makes an association inside the budgetary calendar to find news data that can impact express money sets.
- Short-term traders can benefit from the thinking of long-term investors
- Traders should consider their system to be a long-term investment
- AI trading users who allow the system to work can reap its long-term benefits and market-beating performance.
Disclaimer: Forex and Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money due to leverage. Forex trading is not suitable for everyone. You should consider whether you understand how forex and CFDs work and whether you can afford to take the high risk of losing your money.
The forex brokerages displayed shall disclaim the overall performance of traders in their platforms. Oanda warns that 76.8% of retail forex traders lose money trading CFDs. XTB warns that 80% of retail forex traders lose money trading CFDs. The forex broker Fxcm warns that 69.66% of retail forex traders lose money trading CFDs.
The performances aforementioned are not related to Wiseinvest AI forex trading and AI forex signals system. You can check the performance of our AI forex system on our dashboard.