It is recommended to engage in long-term or regular investment in currency trading rather than frequent contract trading, mainly due to considerations of risk, time costs, and trading costs.
Regarding risk, long-term trading and regular currency investments are relatively more stable. Long-term trading is based on the long-term value growth of assets, for instance, investing in high-quality stocks where the gradual improvement of company performance drives the stock price up. Regular currency investment can average costs through periodic fixed investments, reducing the impact of market fluctuations. In contrast, frequent contract trading is greatly affected by short-term factors, making price fluctuations hard to predict. For example, futures contracts can be significantly affected by policies or unexpected events, leading to substantial price fluctuations in a short period, which is highly risky.
In terms of time cost, long-term or regular investments do not require constant attention to the market. For example, when investing in funds regularly, once a plan is set, you can proceed with investments step by step. However, frequent contract trading requires investors to keep a close watch on price changes and constantly analyze various market information, resulting in high time costs.
As for trading costs, frequent contract trading incurs rapidly accumulating costs due to the high number of transactions. In contrast, long-term and regular investments involve fewer transactions, leading to relatively lower trading costs.