In recent weeks I came to realize that I’m not a scalper nor a short-term swing trader. At best I’m a long-term swing trader, but ultimately I’m more of a position trader. I like trading the daily charts because I can check my charts before bed each night and conduct analysis on the weekly charts every weekend. I did some backtesting and realized that my trades would generally have to be held for a minimum of a week, but could last up to several months.
Roll-over is a bit of a concern, however. I trade with FXCM, and roll-over for a short position on AUDUSD is currently -$0.5 if I’m not mistaken. Seeing as I trade micro lots (0.01 standard lots), $0.5 is the equivalent of 5 pips. If I were to hold onto a trade for 60 days, roll-over alone would cost me 300 pips. If I were to make 900 pips during those 60 days, roll-over would eat 1/3 of my profits, which is not very encouraging! Is there any way around this? Should I just look to trade pairs that have low roll-over fees?
Are there any position traders here on Babypips? If so, then please leave a comment with your words of wisdom!