Trading Weekly TFs...What am I missing?

Beginner Questions
1

New here and to Forex…Working my way through BabyPips school…

I have a question regarding trading on weekly, or even longer trends on daily charts…Looking at the chart below, you see a downtrend starting at 5/3/12 and still continuing…So if I entered short on 5/3/12, and were still in the market, there would be significant gains, BUT…what about the overnight swaps??? Are they just something you deal with in longer term trading and strategies, or am I totally missing something??? Forgive me for my rookie questions…Just trying to keep learning

-Chad

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2

Can’t get around the swaps on longer trades but if they are positive? … well its icing on the cake. However, you might consider this, if your a shorter tf trader you will perhaps take 2-10 trades a day. Now add those up over a week. 2 trades a day x 5 days (say 3 pip spread) = 30 pips. 10 trades a day x 5 days = 150 pips. 30 - 150 pips before your at weekly break even. Given those numbers, I’ll take a negative swap and a longer trade. :slight_smile: