Why Trade Long Term?
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  1. #1
    Join Date
    May 2006
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    126

    Default Why Trade Long Term?

    1. Big money comes from big moves and these take a lot of time to develop.
    2. Long term trading often results in less trades with fewer mistakes and lower commission and slippage costs.
    3. Analysis of Long Term Data is simplified by reduced noise.
    4. Long term trading requires dramatically reduced time for analysis and trading.
    5. Long term trading can provide additional diversification for shorter term traders.


    (taken from Futures Truth Magazine Interview )

  2. #2
    Join Date
    Apr 2006
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    48
    All are very good reasons, but you can't forget carry-trading.

  3. #3
    Join Date
    May 2006
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    126
    Thanks for that, Michael!

    I really need your ideas here to complete my list

  4. #4
    Join Date
    Jun 2006
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    18
    Long term trading is not liquid, unlike short term trading that you can easily get the money, win or lose right away, and you know where you stand most of the time, if you are losing, then stop and if you have profited, then move on but it is also better to stop before the profits are taken back.

  5. #5
    Join Date
    Dec 2006
    Posts
    440
    Hi,

    Just to add, long term trading normally means having a bigger account size aswell.

    some people do it and well,its ok if you have 100k in your account.

    both methods with correct money management will make money.

  6. #6
    Join Date
    Dec 2006
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    In america
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    You can trade longer term with smaller accounts. The best way to do it is smaller lot sizes(i love micro lots) and scaling in and out of positions.

  7. #7
    Join Date
    Dec 2006
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    Wichita Falls, TX
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    Quote Originally Posted by pamskee View Post
    Long term trading is not liquid, unlike short term trading that you can easily get the money, win or lose right away, and you know where you stand most of the time, if you are losing, then stop and if you have profited, then move on but it is also better to stop before the profits are taken back.
    This is a completely false statement.

    Forex accounts, like futures accounts, are marked-to-market. That means every pip of profit you make is immediately added to your account and each pip of loss withdrawn. You don't have to close out a trade to take profits out of your account if you so desire - as long as you keep enough margin in there to maintain the position.

  8. #8
    Join Date
    Dec 2006
    Location
    Colorado, USA
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    Quote Originally Posted by nancypants View Post
    You can trade longer term with smaller accounts. The best way to do it is smaller lot sizes(i love micro lots) and scaling in and out of positions.
    I've been told when starting out to trade mini or micro lots to minimize risk while learning this stuff but I have never done this. I have perhaps a misconception that trading mini/micro lots will just take along time for your account to grow (1 pip = $1 gain)...or disappear.

    I think this is a great topic for discussion specially for people just getting started. (Trading Micro/Mini or Standard)?
    (I just opened a new thread on this subject in newbie island. It would be interesting to know other people insite on this)

    What is your experience trading mini/micro lots? Does it really take long to grow your account? Please elaborate what you mean by scaling in/out of position.

    btw geline, I like all those reasons.
    Last edited by ramrocket; 01-05-2007 at 12:02 PM.

  9. #9
    Join Date
    Dec 2006
    Location
    Pakistan
    Posts
    55
    short term trading is a sure way to destruction for 98 % traders and it is the only long term trading that eventually makes you successfull due to its nature of being so. Those who want to succeed i think they should shed away this nidea of day/short term trading. My ideas and someone may differ please

  10. #10
    Join Date
    Dec 2006
    Location
    Cairo, Egypt
    Posts
    327
    I've experienced that I only win by trading daily charts and up-to monthly charts.

    Intraday trading is often choppy, causing a loss for most of us. Trends are more clear in longer term, so I agree with hello1234 on this point.

    Regardless of being an amateur or a professional trader, long term trading gives us a fewer trades, more pips. only thing that we have to use very small lots, or start with a big capital.

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