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Anyone here hold positions for weeks or even months?

  • #1
  • First Post: Oct 7, 2007 5:34am Oct 7, 2007 5:34am
  •  shauny
  • | Joined Jul 2007 | Status: Still learning and never gonna stop | 127 Posts
I'm looking into long term trading(long term investment), using weekly charts and etc. I was wondering if any traders does long term trading, if yes, how do you deal with the rollover interest premiums? Is that an disadvantage when you hold long term? Of course I know there is debit and credit of interest to your account? If the interest are crediting to our accounts, we are happy to continue to hold the postions, but what if its debiting? Would the positions lose money just to pay those interest incurring over the long run? Really appreciate for some good advices here.. Thanks alot!!
  • #2
  • Oct 7, 2007 5:42am Oct 7, 2007 5:42am
Yes, I do.. I have a few long term speculative position. I shorted USD/CAD at 1.1800 in feb using very low leverage and I'm still holding it, I will probably close it soon. One of the big reasons I took this position was because the Canadian fundamentals looked strong and oil was relatively cheap at this time. USD/CAD and oil are closely correlated in the long term. There was also an elliot wave suggesting a move down too. Price had bounced around the 1.1840 area for weeks and it looked ready to move down. I've been looking to short GBP/USD and hold it long term, but there could be more upside to come.. I might have to wait until next year. No rush.. best to remain patient.

Regarding interest rates, that is a downside to my usd/cad position.. It attracts negative swap at rollover... but its not much, and even less now the fed cut rates. I don't think I would go short on a yen pair long term though, that would be too much of a hurdle to overcome.
  • #3
  • Oct 7, 2007 6:09am Oct 7, 2007 6:09am
Quote
Originally posted by PeterM:
I don't think I would go short on a yen pair long term though, that would be too much of a hurdle to overcome.

Yes, you're right.....it's killing even on a micro account. A good lesson to begin with for a newbie..:
  • #4
  • Oct 7, 2007 6:38am Oct 7, 2007 6:38am
  •  shauny
  • | Joined Jul 2007 | Status: Still learning and never gonna stop | 127 Posts
Quoting peterM
Yes, I do.. I have a few long term speculative position. I shorted USD/CAD at 1.1800 in feb using very low leverage and I'm still holding it, I will probably close it soon. One of the big reasons I took this position was because the Canadian fundamentals looked strong and oil was relatively cheap at this time. USD/CAD and oil are closely correlated in the long term. There was also an elliot wave suggesting a move down too. Price had bounced around the 1.1840 area for weeks and it looked ready to move down. I've been looking to short GBP/USD and hold it long term, but there could be more upside to come.. I might have to wait until next year. No rush.. best to remain patient.

Regarding interest rates, that is a downside to my usd/cad position.. It attracts negative swap at rollover... but its not much, and even less now the fed cut rates. I don't think I would go short on a yen pair long term though, that would be too much of a hurdle to overcome.
I know the interest swap is an important point to take note if one is going to hold long term positions like what you mentioned "short usd/cad". Do you trade short term or purely long term investment on forex pairs? Coming back to your long term positions, do you set a trailing stop? If yes, what are the pips allowance you deem fit for the major currencies(purely long term)? What about stoploss?
  • #5
  • Oct 7, 2007 6:52am Oct 7, 2007 6:52am
Quote
Originally posted by PeterM:
I shorted USD/CAD at 1.1800 in feb using very low leverage and I'm still holding it, I will probably close it soon. One of the big reasons I took this position was because the Canadian fundamentals looked strong and oil was relatively cheap at this time.

Hi PeterM,

I'm a noobs pertaining to fundamental concepts. Do you mind enlightening me what's the correlation of oil price with usd/cad? Thank you.
  • #6
  • Oct 7, 2007 12:11pm Oct 7, 2007 12:11pm
Quoting doremi
Hi PeterM,

I'm a noobs pertaining to fundamental concepts. Do you mind enlightening me what's the correlation of oil price with usd/cad? Thank you.
I'm not PeterM, but that being said - USD/CAD and oil are strongly related as the US buys large amounts of oil (and gas) from Canada (Canada is the US's largest external source). Because the US is essentially trading USD to Canadian producers for oil, the net effect is to put lot's of USD onto the market that then have to be exchanged for CAD, which increases demand for CAD, and decreases demand for USD. So the USD/CAD goes down.
  • #7
  • Oct 7, 2007 12:13pm Oct 7, 2007 12:13pm
I do. I usually hold a position more than 3 weeks. Sometimes months. My longest trade was 2 years and 7 months. It could be longer but I got greedy and took the profits.
Take a report.
  • #8
  • Oct 7, 2007 12:26pm Oct 7, 2007 12:26pm
  •  shauny
  • | Joined Jul 2007 | Status: Still learning and never gonna stop | 127 Posts
what charts do you use for such long term positioning? do you use trailing stop?
  • #9
  • Oct 7, 2007 1:07pm Oct 7, 2007 1:07pm
Quoting shauny
I know the interest swap is an important point to take note if one is going to hold long term positions like what you mentioned "short usd/cad". Do you trade short term or purely long term investment on forex pairs? Coming back to your long term positions, do you set a trailing stop? If yes, what are the pips allowance you deem fit for the major currencies(purely long term)? What about stoploss?
I trade long term speculative positions and I trade the daily charts. I occasionally trade major news events if there is a good opportunity. I am going to test a scalping strategy for a while on demo too.

Pete
  • #10
  • Oct 7, 2007 1:08pm Oct 7, 2007 1:08pm
Quoting shauny
what charts do you use for such long term positioning? do you use trailing stop?
I look at daily/weekly/monthly charts, but I put a lot of emphasis on the fundamentals.
  • #11
  • Last Post: Oct 7, 2007 4:30pm Oct 7, 2007 4:30pm
Quote
Originally posted by HalifaxCB:
I'm not PeterM, but that being said - USD/CAD and oil are strongly related as the US buys large amounts of oil (and gas) from Canada (Canada is the US's largest external source). Because the US is essentially trading USD to Canadian producers for oil, the net effect is to put lot's of USD onto the market that then have to be exchanged for CAD, which increases demand for CAD, and decreases demand for USD. So the USD/CAD goes down.

Thanks for the explaination. It's time for me to learn fundamentals now. Am I correct to say that should crude oil price increases then the demand for the currency of oil producers will increase too?
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