Forex Blog

First-hand Forex trading experience and information about foreign exchange market that will be useful to traders


Long-Term Position Holding Opportunities in Forex? Possible!

August 20, 2012 by

Dismissing a trading strategy in one market just because it cannot be as profitable as one would expect it to be in some other market is probably not the wisest of the Forex traders’ popular conventions. “Buy-and-hold” strategy is a victim of one such convention. Sure, you cannot rely on it the same as in stocks. Sure, it is hard to manage risks as there is no optimal stop-loss area. But despite these drawbacks, buy-and-hold can earn trader substantial profits if done right. You can read more about it in a freshly added strategy description:

By the way, another example of an interesting (and ongoing) long-term buy-and-hold opportunity is shorting of the USD/HKD currency pair. With Hong Kong dollar being about 44% undervalued (according to PPP) there is a significant chance for a slight reduction of the current peg to US dollar. Considering a rather low level of volatility of the pegged pair the risk can be easily limited. A huge disadvantage here would be an indefinite (probably, very long) holding period.

If you have suggestion or questions regarding the buy-and-hold Forex trading strategy, please feel free to submit them using the form below.

One Response to “Long-Term Position Holding Opportunities in Forex? Possible!”

  1. Brenda Myers

    When I first started trading the EUR/USD, I was always struggling to know how long I should stay in my trades, especially if they were going against me. I’ve been able to almost eliminate that problem since I started using the indicators that Tactic Trading provides. I wasn’t able to find these indicators anywhere else, and once I started using them became an all around better trader. If anyone else is interested in checking out some trading using their indicators, they have some sites that you can visit.


Leave a Reply

required (will not be published)