Long-term Forex trading, what you need to know about foreign exchange trading

Long-term forex strategies imply that the player's transactions remain open for a long time. Trading systems, a priori, use long time intervals, transactions are open from several weeks to several months.

The methodology of a long-term trading option can be quite diverse, each of the chosen methods has its own advantages and disadvantages, but it meets the main condition - trading for long periods. If to speak about time intervals, it can be day time (D1) or even higher - week (W) or monthly (MN).

In order to increase the efficiency and profitability of the work, it is necessary to understand all the nuances: do not try all the long-term strategies of the currency market at once, but prefer several variants. Selected methods of traders, experts strongly recommend testing and carefully checking before starting to trade.

Regardless of which tactics you apply - or the daily forex strategy or automatic trading with the help of forex advisers on the interval D1, first you need to check whether the selected system is functioning correctly, if there are no errors in the algorithm and whether there are any false signals.
And only after such a testing procedure, you can apply the strategy in trading.

As a rule, each long-term tactic has such features:
1) the main positive property is the exact predictability of trends;
2) overestimated stability over long time intervals - which can not be said about trading with hour or minute intervals.

Trading in the daily interval, weekly or monthly, in addition to long-term forex strategies gives us the opportunity to see the trend clearly. You can not get more information about the trend, and certainly use it with profit.

Also do not forget that long-term trading gives us high profit results (when compared with short-term ones). This is due to the fact that at large time intervals traders can see significant price changes. Such a spread is counted by hundreds of points and with the right direction of the transaction, with the correct forecast of the trend, we can conclude very profitable trades.

Another positive aspect of long-term strategies is that the player does not need to constantly monitor the transaction and monitor the situation on the market: he has plenty of free time to assess the situation, analyze and make the most accurate forecast possible.

Choosing a long-term variant of trading, focus, first of all on your psycho type and possibilities: such trade is perfect for those who simply are not able to make instant decisions and do not have a lightning reaction. Long-term trading is an ideal option for people who doubt, tend to think long and often commit rash acts.

Another advantage - the trader has time to assess the need for closing or vice versa, the opening position.

Also, the dignity of long-term trading is the inviolability of transactions that are open: they remain invulnerable even with increased volatility of the instrument. This is due to the fact that protective orders - stop loss are installed far and the transaction can not be deformed.

But like any other trading option, it has a number of shortcomings:
1) high risks;
2) if a reversal occurs, the price will reach the order stop level, financial losses can be very high;
3) the total profitability of the transaction can be reduced by the transfer fee - commission commissioned by brokers. The longer the time frame, the greater the value of such a board.

Also consider the presence of an impressive deposit: for trading on large time frames, the trader must have a large amount in the account. It's just necessary - so the deal can withstand the course jumps and survive all the fluctuations.

And do not forget, in addition to an impressive account, you must have the knowledge and ability to predict currency movements as accurately as possible, correctly calculate risks and calculate profitability.

Planning and analysis are keys to success!