Forex as investing

Rather than trade on a daily, weekly or even monthly basis, is it feasible to trade on a quarterly bases or in general for periods of up to 6 months? I’m guessing the rollover fees will just mount up and eat into your profits a bit but then so will paying spread if you trade on a weekly basis or whatever.

Any thoughts?

cfd rollovers will kill you. if you want to trade that way then go on a stock exchange and trade futures on currencies.

So what do you recommend as the maximum time to hold a trade? 3 months?

I have been doing this for eight months now and I can say that it is psychologically very different from active trading… I have filled Forextown with my thoughts and frustrations with regard to trading ‘big picture’ themes…

no, you can trade for severl months and even years holding to one position. im saying choose a better tool the CFD’s as CFD are structured product which are credited product (you get a credit/loan/morgage from your broker) and the interest rate (roll over) is very high. Choosing other structured products (id like to help you find someright nowbut i got no english source of structured products like options and futures) will save you a lot of “interest rates”.

if trading on a daily basis or few weeks then the “interest rates’” for these “CFD credits/loans” dont matter too much, but trading on a very long scale then CFD’s are not your product as simply:

a daytrader looks for minimal fluctuations to earn money, no interest rate of trades closed before night.
swing traders look for fluctuations of few days maximum few weeks. interest rates calculated over this time period sum up to 2-10% of unleveraged (margin used) value.

long term trader look for a fluction of 10% the entire year at a good year, leverage that up to lets say 10:1 its (simply spoken) 100%, so if your paying interest rate of 50% for your CFDs which you are holding, then half of your profit is gone. on the other side on a futures option which leverage you in the same amount you pay a yearly interest rate of 2-3%.

so big difference.

Introduction to Position Trading

As investing forex is well place , i earn here good money with my trading ability . First trained yourself to do good trading , understand all details of forex by practicing then invest some amount to check your skill. Forex will not disappoint you if you are passionate and having patience in this business.

Long term position trading | Futures Magazine

An interesting article…

Tried this long term before rather than day trading, but blown up my whole account :frowning:

SOrry to hear that, but tell us more?

[QUOTE=“PipMeHappy;761187”] SOrry to hear that, but tell us more?[/QUOTE]

Tsk! Tsk! Tsk!

forex requires a big investment - time, money, self development and so on. You should know what you face before starting.

Oh, go on, do tell us!!

yaaahhh tell ussss

oh wait? what was topic? nevermind, agree to pipmehappy, tell us!

Forex is not for investing, it’s for TRADING! As with any craft it is a broad subject. Currently I am studying Fibonacci sequences. Trading = Income. If you get good enough quit your day job. Earn your bread and butter TRADING and invest in the stockmarket and bond market or buy an S and P index fund, whatever. You can use Trading techniques to help you enter into your investments. Trading is work and it takes homework.

I agree that spot forex trading is not generally used for long-term investing, but the whole ‘carry trade’

forex vehicle is used by large investors/speculators for returns over time… There are ways and means

to use forex as a long-term investment vehicle…

Plus, ‘trading is work’ applies to long-term trading as much as intra-day trading, because you need

to manage your risk, monitor your trades, follow sentiment changes and macroeconomics, although

there is no hour-by-hour active trading, it is still time-consuming in some way.

Just saying :slight_smile:

[QUOTE=“PipMeHappy;761283”] Oh, go on, do tell us!![/QUOTE]

Awww… Hey it’s a loosing trade

I think forex should be treated as an investment. Kind of hard setting target income per month when you know nothing’s guaranteed.

It is vital that a new entrant in this business should invest first on knowledge on foreign exchange before investing. Other ways in which one can learn the profession include attending specific forex courses on colleges and online tutorials and self education. Whichever way an aspiring forex trader opts to learn to trade currency, the fact remains that proper knowledge is vital in seeking to succeed in this business.

Investing => Trading => Business => Actually Coin Flipping or Gambling!! 95% lose money, the ones making the money are likely the brokers with their spreads and interest charges. Don’t be deluded by veiled posts. Babypips has a school every newbie should go through. I got to the section on Fibonacci, that is where I steered off and endeavored to focus my efforts on developing in depth understanding of that methodology.