An Idea - tell me what's wrong with it...

I've noticed that trading longer term charts, ie. daily or monthly, seem to be much "safer" than hourly or 4 hour charts.

Just looking at a recent swing this year (monthly chart), there was about 650 safe pips of profit going long from about February to September on the EUR/USD.

As safe as this seems, and assuming you have an account large enough to avoid a margin call, why not leverage the heck out of this somewhat safe trade?

All feedback appreciated.

So you're going to make a "safe" trade and make it unsafe. Am I missing something?

That why Johnny Hindsight is the best trader out there. I could look back at my 5min charts and probally find ya about 10,000 safe pips... only if it was that simple..


turbo

Even if you had taken the trade you are describing, there would not be 650 pips of profit because you would be in the wrong direction for the rollover with a euro long position. You would also have to take into account the daily charges which you would have paid your broker.

In fact, in my demo account, I did place just such a trade at the beginning of February and closed it at the beginning of May with a profit like you describe. It was only imaginary money unfortunately, because my real account could not have handled the needed stop losses (also my nerves probably would not have either). Also my demo account was not charged rollover fees. But then those are pips and $ you cannot spend anyway.

A whole lot can happen to economies in a 6 month period. I am not debating whether daily, weekly or monthly charts are better than smaller range charts. In my opinion the further you get away from seconds even minute charts the better. The smallest time frame I will ever trade on is 15min. Though 90% of my trades come on 1hr and 4hr charts.

By saying rollover fees, do you guys mean interest?