Long term trading.
- Thread starter Jzm
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hey jzm..... long term needs to be defined....
long term, by my definition, are trades lasting longer than 6 months..... typically 12...... for that, almost nothing beats the coppock indicator with psar on the monthly charts...... add only in the direction of the target and keep individual trades small..... targets will be in the thousands of pips and trades will number in the hundreds..... be sure to keep individual trades small.....the closer you get to your target, gradually scale back on new orders......
these trades also need to be mindful of swap..... enivid has the coppock indicator posted and the platform has psar.... you can apply moving averages to the coppock indicator, or turn it into a macd style..... in either case, trade the slow erosion or slow climb in price once it breaks the psar...... h
long term, by my definition, are trades lasting longer than 6 months..... typically 12...... for that, almost nothing beats the coppock indicator with psar on the monthly charts...... add only in the direction of the target and keep individual trades small..... targets will be in the thousands of pips and trades will number in the hundreds..... be sure to keep individual trades small.....the closer you get to your target, gradually scale back on new orders......
these trades also need to be mindful of swap..... enivid has the coppock indicator posted and the platform has psar.... you can apply moving averages to the coppock indicator, or turn it into a macd style..... in either case, trade the slow erosion or slow climb in price once it breaks the psar...... h
Long-term trading can be based on fundamental analysis and macro indicators. Do you have a good understanding of FA and macroeconomics? If you do, that's the way to go. Study the current situation in currencies, pick the ones with well-defined targets and stops - and execute your trades. My best trades were long-term ones and ran for many months. However, you will have to spend quite a lot of time researching the underlying economic and political conditions to trade in such a way successfully.
Can I base on someone's opinion when planning long term trade? I'm not an economist and haven't economic education. All what I learned I got by myself. But I'm afraid that it will be not enough for long-term trading, though I want to look how it works very much. Can I trust forecasts of other economics? I wanna try to trade some pair for 6-12 months, but not sure if my basic knowledge will be enough.
What you can advise me? Maybe, if not economists blogs, than some books?
What you can advise me? Maybe, if not economists blogs, than some books?
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hey robian.... you might want to avoid trades that would incur negative swap...... it will weigh you down.....
i know a girl, with many standard lots, that for quite awhile lived solely off the swap paid by the audjpy..... this was a few years ago when jpy carry trades were popular a swap was high.... that's not the case today.....
personally i'd read everything related to the currency itself.... esp the comments and forecasts of the currencys central banks and imf.... as far as major banks themselves, again i would, and do, read everything they write.... there are quite a few sites that carry their views, like efxnews.....
search out those sites..... you'll find that often those forecasts will completely disagree..... this is why you'll still need to trade the charts..... forecasts are forecasts, nothing more.....
do not underestimate how hard it is to hold a trade 12 or more months...... quite often i remember enivids post here..... wish I still had all those jpy trades......h
Thank you very much for the detailed info. I didn't read eFXnews earlier, but I will now.
I trade on islamic account, so it is swap-free.
The hardest thing is forecast and holding a trade for such a long time. Hope, I'll get used to it. Cause now I'm focused on short-term trades and want to make something more serious in future.
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hey robian..... it helps me to search for the turning points on the monthly charts..... on average, roughly every 20 to 25 months the pairs break the psar as they turn..... several pairs are due, such as the nzdjpy, audjpy, cadjpy..... those are high beta commodity pairs..... that type usually are the first to fall and first to rise as the worlds economy rises and falls..... check the monthly macd on those 3 pairs..... all 3 should be at, or within 500-800 pips, of a bottom.....
the next money maker will no doubt be the gbp..... odds are that will be next year..... look now for the next turn so as to be prepared.....h
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Thank you very much for the explanation, hayseed!
Tell me please, is it really better to trade commodity currencies? Why not majors?
It seems to me I've got the main principle... I should try it on demo, I think.
Thank you once more
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hey robian..... the majors would be just as good..... the gbp will be the best once the dust settles.....
even though we think of australia, new zealand and canada as big, economy speaking they are small.... and the amount of their currency in circulation is extremely small when compared to the euro, usd, and/or jpy.... so any demand, or lack of, for their dollars puts a heavy weight on the supply-vs-demand which really propels them up or down..... this is why they are known as the high beta currencies.....
once fundamental demand turns them around the speculators will do the rest......h
Thank you so much, hayseed!
Yeah, I see the situation on GBP. I understand now why commodity currencies are good, so will try to analyze what will happen and to open a long-term trade !
Fibonacci Indicator strategy is employed by forex traders as a long-term plan to make the trades profitable. The indicator mainly uses the ‘Pullback’ and the ‘Trend’, both of which are fundamental in nature. In order to have a complete understanding as to how this strategy works, traders must be familiar with the more fundamental concept called ‘the trend’.
There are a lot of reasons which believe that long term trading helps you for success more than small term trading & I will get a few reasons for the same in my comment. “Long term” means looking at the daily chart rather than looking at 1 minute or 15 minute chart. I believe that one of the issues with Forex traders is that they are caught up in short term and become scalpers, that they don’t identify what long term trading is.
For some traders short term strategy do not work, so they start using a long term strategy, trading through hourly charts”
Most of the Forex traders have issues today and have a lot of trouble being profitable. For some reason, the majority of traders like beginners are so bent on scalping that they don’t realize that what long term trading means. I am talking about weekly charts as a guide for targets & potential and thus, using a lower time frame which is to execute the trade for more precision.
Some traders win & some lose. But do not try to manage the trade or get fancy, just trust one strategy & let it trade and bring you profits. Trading is all about math’s-a good strategy brings loser & winners both. However, at the end the winner outweighs the loser. They would in the strategy if you follow it with discipline.
For some traders short term strategy do not work, so they start using a long term strategy, trading through hourly charts”
Most of the Forex traders have issues today and have a lot of trouble being profitable. For some reason, the majority of traders like beginners are so bent on scalping that they don’t realize that what long term trading means. I am talking about weekly charts as a guide for targets & potential and thus, using a lower time frame which is to execute the trade for more precision.
Some traders win & some lose. But do not try to manage the trade or get fancy, just trust one strategy & let it trade and bring you profits. Trading is all about math’s-a good strategy brings loser & winners both. However, at the end the winner outweighs the loser. They would in the strategy if you follow it with discipline.
in order to our trading experience we the traders basically choose our trading approach. Basically in my trading career, I always like to depend on long term trading policy which is safer and sounds than any other approach. But sometimes I like to use scalping for making profit very rapidly.
Keep an eye on the central bank news. They will tell you what they plan to do with future interest rates. If they plan on hiking, the long term view is that a currency will rise; if they plan on cutting, the view is that a currency will fall. This is one of the easiest methods I use to gain long term insight.
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