Short-term trading is one of the most popular forex trading approaches adopted by retail traders. Being the ideal place for short-term trading opportunity is one of the factors that make the forex market very popular. A short-term currency trader typically aims for small to moderate gains but initiates a large number of trades over a specified period. Successful short term forex traders have back-tested their trading strategies, either manually or thru computerized back-testing software.

The forex market can be viewed in limitless ways and traded in unquantifiable combinations, but there will always be the long and short-term view. There are a large number of different approaches to trading, and traders can sometimes feel confused or clueless when determining which approach to use at the beginning of their careers.