URICH2.com

You can earn cashback on every trade

no increased commission or spread, just the original trading cost offered by brokers

Get the best commission rebate rate with us


Brokers News

         Fundamental Concepts             Advanced Concepts             Strategy & Education             Personalise Manual
The manual of long-term trading strategies in forex (1)
Source: | Author:finance-102 | Date2023-10-16 | 334 Views | Share:
Long-term trading strategies in forex involve holding positions for an extended period, often weeks, months, or even years, to capitalize on fundamental market trends. Unlike short-term traders, who focus on quick movements and volatility within a day or a few hours, long-term traders base their decisions on a comprehensive analysis of economic, geopolitical, and macroeconomic factors. Here are some common long-term trading strategies employed in forex trading:

Long-term trading strategies in forex involve holding positions for an extended period, often weeks, months, or 

even years, to capitalize on fundamental market trends. Unlike short-term traders, who focus on quick movements 

and volatility within a day or a few hours, long-term traders base their decisions on a comprehensive analysis of 

economic, geopolitical, and macroeconomic factors. Here are some common long-term trading strategies employed 

in forex trading:


1. Trend Following

Trend following is a fundamental strategy in long-term trading. Traders identify major trends in currency pairs by 

analyzing historical price data and use various technical indicators to confirm the direction of the trend. Once a trend 

is established, traders enter positions in the direction of the trend and hold onto them, expecting the trend to continue 

for an extended period.


2. Carry Trade

Carry trade is a strategy where traders take advantage of the interest rate differentials between two currencies. 

Traders buy a currency with a higher interest rate and sell a currency with a lower interest rate. By holding the higher

-yielding currency over the long term, traders aim to profit from the interest rate differential. This strategy requires 

careful consideration of central bank policies and economic stability.


3. Breakout Trading

Breakout trading involves entering a trade when the price of a currency pair breaks above or below a significant 

support or resistance level. Long-term breakout traders wait for substantial price movements, indicating the beginning 

of a new trend. They enter positions in the direction of the breakout, expecting the trend to continue for an extended 

period.


4. Swing Trading

Swing trading focuses on capturing shorter to medium-term price movements within an existing trend. While swing 

trades can last several days or weeks, they are based on the overall trend direction. Swing traders analyze price patterns 

and use technical indicators to identify entry and exit points within the trend, allowing them to capitalize on price swings 

over a more extended period.


5. Fundamental Analysis

Fundamental analysis involves evaluating economic, political, and social factors that can influence currency values. Long

-term traders who employ fundamental analysis closely monitor economic indicators such as GDP growth, employment data, 

inflation rates, and trade balances. They also assess geopolitical events, government policies, and central bank decisions to 

anticipate long-term currency movements.


6. Position Trading

Position trading is a long-term strategy where traders hold positions for several months or years. This approach is based on 

the fundamental analysis of economies and currencies. Position traders aim to profit from significant economic trends, and 

they are less concerned with short-term price fluctuations. They often use wide stop-loss orders to give their positions enough 

room to withstand market volatility.


FXPRO NEWS

Cash Back Commission

AXITRADER NEWS

Cash Back Commission

TICKMILL NEWS

Cash Back Commission


Trading Knowledge