Forex trading requires a trader to trade with the bigger picture. They have to plan long term forex trading strategy that involves all the possible information about a currency pair. That information includes:
Interest Rate
In planning a long term forex strategy you cannot ignore interest rate. Every time you hold a currency trade for more than a day, you will either pay a little bit of interest or earn a good amount of interest.
That possibility depends on the currencies involved and the direction of the trade. Usually, traders prefer to buy the currency that paid sufficient interest than weaker currencies. That way, they create a trend.
Fundamentals
It is the process to track the progress of the commanding heights. It includes employment, interest rates or even a country’s politics. Knowing the fundamentals is essential for the currency involved.
Technicals
There are several methods to do technical analysis. Saying technical analysis to a trader will make them move averages.
Trading in a bigger picture means you try to find technical aspects to support your trade. Since you will not want to technically overbuy a currency pair, then, you should have technical analysis for your every decision.
Technical analysis helps you find the right timing and avoid getting caught in a bad time.
Weekly Charts
If you do not like to check the changes on a currency pair, you can check everything on the weekly charts. Bigger weekly charts can make the moves on the daily chart loo trivial.
Besides, weekly charts can also give more clues on the things you are analyzing. In the end, it helps you to make a stronger trading decision.
You should never make trades to just have it. You should also have the ability to explain your trades to the third party whenever you have to do it.
Real trading or long term trading can be bored and slow. Many traders doing this usually told to trade fast and leveraged. That later direct many traders in the wrong direction.
Writer: Lisa Ramadhani
