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Long term forex investing

  • #1
  • First Post: Oct 30, 2006 7:36am Oct 30, 2006 7:36am
I believe that most of us here are short-term speculators. But is it viable at all to trade Forex in a long term basis? It is a highly volatile market with huge fundamental flunctuation over time. How do you adjust your position and so on so forth?
  • #2
  • Oct 30, 2006 7:40am Oct 30, 2006 7:40am
only way to do long term with Forex is buying on the side that you receive interest (see roll-over interest policy on eah broker). Example buying uSDCHF, you will receive about 1 pip every day. It means even the dollar go down 30 pips in a month, you still break even...
  • #3
  • Oct 30, 2006 8:00am Oct 30, 2006 8:00am
so i guess there is no such thing as value investing in forex huh unlike stock market and such?
  • #4
  • Oct 30, 2006 8:04am Oct 30, 2006 8:04am
Quoting moneydude
so i guess there is no such thing as value investing in forex huh unlike stock market and such?

nope, there is nothing called value investing here, but to be safe i suggest using daily charts, with trend indicators.

just follow the trend, wherever it changes, change with it.
  • #5
  • Oct 30, 2006 8:05am Oct 30, 2006 8:05am
Quoting moneydude
I believe that most of us here are short-term speculators. But is it viable at all to trade Forex in a long term basis? It is a highly volatile market with huge fundamental flunctuation over time. How do you adjust your position and so on so forth?
there are long term trends as well, the key is to spot an opportunity = strong consolidation, and then wait for breakout and large trend lasting month or two - approximately from 500 to 1000 pips. the second 'key to success" is to take a position with smallest possible SL and then wait... you can double (and more) your account this way in a month or two with small risk - VAR equals 2 - 2,5 % of account in a single trade.
Quidquid latine dictum sit altum viditur
  • #6
  • Oct 30, 2006 8:06am Oct 30, 2006 8:06am
Quoting moneydude
so i guess there is no such thing as value investing in forex huh unlike stock market and such?
Of course there is! The EURUSD dropped 250 pip in the first 2 weeks of October. So what if you had to pay a pip a day? That is the cost of borrowing large sums of money.

The forex market attracts people because they hear that it is a trending market. The first thing they do is open a 15 minute chart and start looking for a trend. If you pull you head back (or out) you will see trends and opportunity all over the place.
  • #7
  • Oct 30, 2006 8:09am Oct 30, 2006 8:09am
Quoting philmcgrew

The forex market attracts people because they hear that it is a trending market. The first thing they do is open a 15 minute chart and start looking for a trend. If you pull you head back (or out) you will see trends and opportunity all over the place.
pure wisdom....
Quidquid latine dictum sit altum viditur
  • #8
  • Oct 30, 2006 8:12am Oct 30, 2006 8:12am
Quoting philmcgrew
Of course there is! The EURUSD dropped 250 pip in the first 2 weeks of October. So what if you had to pay a pip a day? That is the cost of borrowing large sums of money.

The forex market attracts people because they hear that it is a trending market. The first thing they do is open a 15 minute chart and start looking for a trend. If you pull you head back (or out) you will see trends and opportunity all over the place.
15 minute chart ??? the guy will blow his account in no time, anything less than 1 hour is suicide.
  • #9
  • Oct 30, 2006 3:10pm Oct 30, 2006 3:10pm
DO you think trading off daily chart will be considered " long term investing"?
  • #10
  • Oct 30, 2006 7:01pm Oct 30, 2006 7:01pm
Try looking at weekly charts. That's blasphemy around here.
"The time to act is when others show signs of tire." --W.D. Gann
  • #11
  • Oct 30, 2006 7:21pm Oct 30, 2006 7:21pm
Quoting dukeofdents
Try looking at weekly charts. That's blasphemy around here.
It's not blasphemy, it just takes 3 months between signals. Most people come here to exchange ideas and learn to trade. Trading 5 years on demo just to find out your system sucks is a long investment in time and simply not necessary.
  • #12
  • Oct 30, 2006 7:28pm Oct 30, 2006 7:28pm
But how do you position yourself fundamentally if you trade off long term chart?
  • #13
  • Oct 30, 2006 7:57pm Oct 30, 2006 7:57pm
You can trade long term thats how you make money in forex. At least thats how I make money. Check out my forum "ELLIOT WAVE TRADING"
  • #14
  • Oct 30, 2006 8:05pm Oct 30, 2006 8:05pm
I realise that long term trends tend to exist more predominantly in exotics.

Look at the dailies of the USDSGD for example...
  • #15
  • Oct 30, 2006 8:45pm Oct 30, 2006 8:45pm
More fundamental information is contained in longer-term charts. I know I used that dirty word, fundamental, but it's true. A 4-hour chart reflects intra-day movements better than a 5-minute chart, and a monthly chart reflects daily movements better than a weekly chart. Sue me for saying it...
"The time to act is when others show signs of tire." --W.D. Gann
  • #16
  • Oct 30, 2006 8:51pm Oct 30, 2006 8:51pm
Next time the fed decide they need to cut interest rate down to zero, enter your position and hold. Wait for next cycle to exit. How's that for long term?
  • #17
  • Oct 30, 2006 8:53pm Oct 30, 2006 8:53pm
I've said this before, too, but if you want a get-rich quick scheme this is not for you. I plan to get rich slow. If I can get even 1.5% per week consistently I'm a badass. I will outlast everyone who thinks that's a joke.

Here's why. Take $10,000. Make 1.5% weekly. Wait. Wait 6 years. Keep making 1.5% per week. After less than 6 years, compounded, you have over 1 million dollars. Compound interest and money management are key, people...
"The time to act is when others show signs of tire." --W.D. Gann
  • #18
  • Last Post: Oct 31, 2006 10:20am Oct 31, 2006 10:20am
Quoting dukeofdents
I've said this before, too, but if you want a get-rich quick scheme this is not for you. I plan to get rich slow. If I can get even 1.5% per week consistently I'm a badass. I will outlast everyone who thinks that's a joke.

Here's why. Take $10,000. Make 1.5% weekly. Wait. Wait 6 years. Keep making 1.5% per week. After less than 6 years, compounded, you have over 1 million dollars. Compound interest and money management are key, people...
The Duke has been reading the tortoise and the hare again! And he should be...not only is it a great book for children, it's a great book for traders.
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