There is an interesting question: "Is the long-term trading should always require huge capital? Are too great to be with stoploss and take profit in order to withstand large floating minus if it was turning its direction before contact with the TP?"
Long-term trading or long term is to trade for a long period. Not profit today but could a few days or weeks later. A long term trader will hold a position open for a longer period of time, could be a few days or even up to a few weeks. Close the new transaction is done if the profit generated was appropriate targets.
For these types of traders, floating minus up to 100 pips is a normal thing and not be thinking. They had calculated that they can withstand the trading account minus to hundreds of pips. Stoploss and Take Profit settings also get hundreds of pips.
With long term strategy, the advantages of the trades can be very large. For analysis of when to enter the market is not too confusing, because the shot is a long-term trend of the movement.
What is clear with trading model, emotional stress / psychological be not so great. Traders also do not need every day "hang out" keep the chart. I am sure you will agree that the long-term forex trading strategy or longterm will give us more freedom. You will spend time in a full no trade and enjoy more of your time for what is important to you. College, work or wants to memorize what you memorized
Long-term forex strategy alone is not really an absolute solution. There are also other strategies that can be used as your companion in taking advantage. It's just that this strategy is used by those who do not want every day to hang out in front of the PC. A long term trader will hold a position open for a longer period of time, could be a few days or even up to a few weeks. Close the new transaction is done if the profit generated was appropriate targets.
advantages
Psychological 1.Tekanan much smaller.
2.Tidak need to keep an eye chart every day.
3.Analisa simpler, more towards fundamental analysis.
Disadvantages
The benefits may be somewhat longer.
What Need Large capital?
Not really. It could be adjusted. Capital is not necessarily large. 100 dollars can too. Note Lot! We take an example, capital $ 100 insta forex standard account, such as:
Lot 0.01 = 0.01 dollars
Lot 0.10 = 0.10 dollars
Lot 1.00 = 1.00 dollars
You open on BUY at 1.2998 TP 1.3705. It turns out that the price fell to 1.2663 / 1.2056 / 1.1867 then I calculated minus is:
1.2998 to 1.2663 = - 335 pips
1.2998 to 1.2056 = - 942 pips
1.2998 to 1.1867 = - 1.131 pips
How flop Management
You open the lot 0.01 ($ 0.01). Just count your stay. Then you minus:
-335 Pips x $ 0.01 = $ -3.35
-942 Pips x $ 0.01 = $ -9.42
-1.131 Pips x $ 0.01 = $ -11.31
Please you calculate if open with Lot 0.02 and so on.
No need huge capital instead? Lot size is key.
Common Mistakes Long Term are:
1 Do not pay attention to the highest or lowest price ever
2 Reopen Open without calculation
3. hedging without being able to get out. So you trapped.
The formulation is the Long Term,
1. you BUY the risks down keharga lowest ever
2. you SELL keharga risk rose highest ever
Gain your 3 Lot comparable to that used
4 Loss or comparable to your floating Lot you use
Is there a Long Term Difficulties?
I think no. You BUY or SELL then note the prices that have occurred. Thus, if just want to play the Long Term consider these things. Simple or complicated? Please ponder!
