Longer term forex trading

[Nimbin]

I have little understanding of the numbers, but a wide and deep reading of news and events around the world - so I concentrate on trading the news and fundamentals, and just use the charts to pick entry points, really.

The trades that have made me the most money seem to boil down to:

1. Observe a long term trend (think; weeks or months)

2. Punt in the same direction as the trend

3. Apply a sensible trailing stop

4. Go to sleep

Thoughts and suggestions appreciated.

 

[Boggo]

1. Observe a long term trend (think; weeks or months)

2. Punt in the same direction as the trend

The two points above I agree with.

Below are two charts of the EUR/USD.
The top chart is a 4 hour chart with a buy signal that has been valid and intact for 3 days for a published potential profit.

Below that is a 30 min chart of the same entity which has a buy signal within the 4 hour buy and hold period.

Notice the difference in time that you hold the trade, buy quantity for approx the same capital at risk and the difference in the potential profit.

In some instances such as this you are better off looking for a trade within a trade (if that makes sense), ASX stocks are a slightly different animal though.

(click to expand)