Long term trades

When it is said that a n investor is investing in the long term my question now is that long term can be what is it days or long hours I mean what is the time range to explain long term trades

Here is the answer, as provided by the Babypips encyclopedia, known as [I][B]Forexpedia:[/B][/I]

Long Term Trading Definition - BabyPips.com

You can access [I]Forexpedia[/I] by clicking the button at the top of this page, or any page on this site.

[I]Investopedia[/I] is another resource for answers to your questions.

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Long term trading needs the patient to hold our positions. I think Long term forex Trading is better than short term, because it requires dramatically reduced time for analysis and trading.

Long term plan trading in my experience giving more comfortable and enjoy, different with scalping trading that required higher concentration and also good internet connection to avoid disconnecting problem with server broker

Physiotherapists have the same problem.

I look at it the other way round. The education-time and practice-time are very similar for both, and once one has put in all the hugely long and attention-demanding learning-curve, I think it’s better to take shorter trades with a higher turnover, and get much more mileage out of one’s skills.

Even at a much shorter scale of comparing (say) one-hour and four-hour charts, I think that although there are larger scale moves available when trading from four-charts, one-hour charts present so many more opportunities that this more than compensates.

Regarding “long-term trades”, I think the definition offered on the page Clint kindly linked to, above, is about right for a general consensus (although all these things are relative) and my own understanding of a “long-term trade” is more or less the one offered there: anything from a few weeks to a couple of years.

The difference between “trading” and “investing”, it seems to me, is mostly about activity/passivity.

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Thanks all for your contributions good day

Well, long time trading style is the most standard way of trading! Almost all of professional Forex traders are using here long time trading style because, long trading is much reliable rather than shorter version trading! By the way, I would suggest new Forex traders to start their trading through short time trading like scalping! Besides, traders need huge trading capital for swing and positional trading!

What makes you think that, Jonathan? I think exactly the opposite …

I don’t agree with that, at all, either. It fails to take trade frequency into account. It’s true that trading on higher time-frames tends to gives more reliable signals, but that doesn’t also mean that it gives more overall profit, because its available trading opportunities are far more limited.

I would strongly urge aspiring traders to [B][U]avoid[/U][/B] scalping. It’s the [I]hardest[/I] technique for them to master, and is a pretty sure-fire way for them to stack the deck even more deeply against themselves. (And in any case, if you think that almost all “professional forex traders” are using a long-term style, why would you want to advise beginners to do the opposite?!) I’m not trying to be rude to you for the sake of it, Jonathan, but I really do sometimes wonder why you continue to make such ill-informed and misguided statements here.

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You forgot to add this Lexys


Long term trades are the real trades. If you are trading sitting in front of your screen for 8 to 10 hours a day, then its useless to be a trader, you can rather do a day job. Trading is to feel free from all this. You should do long term trading that requires very less time on charts but still its very beneficial.

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So you’re saying that trading should be a hobby rather than a business or a profession? Well, it’s one perspective, I suppose … (but please excuse my also mentioning that there must be large numbers of people making their livings from their trading who don’t share it) …

That depends on your trading style, are you swing trading? Day trading? or scalping?

I learned last week Warren Buffett mentioned in the past that a purely fundamental trader should hold a position for no less than 5 years, else don`t do it.

I suppose he knows what he is talking about. Anyone agree or not?

I think there is a need here to differentiate between the long term investment of [I]actual funds [/I](which I would term “investing” and not “trading”) and trading with leveraged funds that require margin to cover negative periods.

I think one also has to be clear what we are talking about when we refer to fundamentals. If we are talking about the economic condition of a country then I think that 5 years is a very sensible and realistic period. For example, if one is positive about Brexit then real funds invested in UK entities today may easily take 5yrs+ to show a good return. Economies do not generally change very quickly and their cycles are measured in years and not months/weeks/days…or at least used to be!!!

Question is, has this old, established view now changed? One only has to look at the pace of changing values of businesses like Facebook, Nintendo, etc to see how fast these can change when compared to the more traditional industries.

Equally, trends in commodities can change very fast.

Therefore it is important to establish what one is actually trading. If it is finding a home for real capital then 5 yrs horizons are maybe very relevant, but if you are trading forex with funds you don’t even own i.e. leveraged positions, then 5yrs is totally meaningless and an absurd timeframe to consider (for example, there may not even be a Euro any more in 5yrs time! :slight_smile: )

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I would recommend a buffet biography if you’re interested in that sort of thing. Although he is clearly an extremely smart man, he was a mortal. He missed out on all the profits from the 90s in tech companies, and the famed berkshire name was originally a textiles mill that wasn’t doing too hot; he’s claimed it was one of the worst investments he’s made (it became what it is from him basically rolling other companies into it to hedge it out IIRC).

That being said, trading equities vs currencies is slightly different due to “true value” being more of an issue in FX (which is how buffet traded), but there is still quite a bit of value to be learned from it. As Manxx mentioned as well, GBP is a prime target for a long term trade. While Brexit created a big jump, never forget that they still have to do the “exit” part of brexit, and when it comes to red tape, it could be a while before we see the “true value” of GBP come to fruition, be it stronger or weaker. I’ve made my pick :slight_smile:

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[B][U]School of Pipsology[/U][/B]

After what happened last night with the GBP pairs I am convinced more than ever that long-term trading is not for me. I feel bad for those who did have open trades in the opposite direction just looking at the charts.

thats not entirely true, both long and short term traders got hit yesterday, that was an unexpected move that effected everything.

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Long Term Trades usually implies trades with period ranging from months to years…

Long term trades are my best, I cannot sit at charts for too long because of my day job. So I trade on daily time frames, it is a safe and much better method than to trade on lower time frames.