I am planning on opening 2-3 long term positions for the upcoming year.
Any tips on how to perform it correctly?
Hi, did you make any back test this strategy? Regards Greg
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The trade itself or which pairs? Either way I would do more learning and practicing on a demo.
Should I be taking what you said literally? You actually intend to open some forex positions to hold for the duration of 2021?
I think the TA strategies on M1 are similar to D1 and H4 strategies.
I suggest focusing on maybe H4 and D1. Then try W1.
Trading slower time frames require wider SLs, hence they are more expensive, hence potentially riskier.
I don’t know your experience or the size of your margins.
But if you’re a beginner, I suggest trading 0.01 lots to experiment with, or do demo.
I’m in the same boat as you—I’m a rookie. So, check what I say against the advice from experienced traders.
However, you may end up holding the position longer than 12 months.
But hey, give it a shot as long as you’re practicing good risk managment.
If you hit your SL, you gotta figure out why, then try again.
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Some things to consider with long term trades are financing, or swap charges from your broker. You don’t want to hold on to a position for months if it’s costing you $1-2 per day, that adds up and takes from your profits. Find pairs the cost little to nothing. Some pairs will even pay you, this is called a ‘carry trade’ but only really works if price is in your favour.
Long term trades require smaller position sizes with much wider stops due to volatility. I would suggest looking at monthly and weekly charts, and following an established trend, or mapping out obvious support and resistance zones.
I don’t know what your strategy is currently, but I have posted some ideas for long term trades in my thread Here
You can check out some other ideas while you’re in the journals section, you might see something that you can test out.
Good luck in the new year!
yes, that is the plan, couple of year long positions.
done both yes
But if you had my point is you wouldn’t be asking us but telling us with your reasoning behind what you are trading, how long and why.
Because you are asking about that, I am hoping that you have already prepared a strategy for it. If not yet, you better prepare it before risking your money.