I make a living with monthly chart trading | Episode 11: How to target swap points without worrying about losses [Relaxed Forex]
In short-term trading, even if you fail once, the next opportunity comes right away, but it’s not the same with long-term trading. Therefore, in long-term trading, how to avoid failures becomes a crucial point. This time, I will share several effective methods to avoid failures.
Profile of Yuttari Gareshi
Yuttari Kase. Individual investor. A member of the “Slow Trade” camp with extremely few trading sessions. Studying every day with the aim of achieving great success in FX. Holds accounts with various FX companies and is familiar with the diverse services within the industry.
Official blog：FX Slow Trade Camp
Official blog：FX Real Trade Dojo
Long-term trading stops income once settled
The basic principle of trading is “buy low, sell high.” The same holds true for long-term trading. Buy at a low price, and receive swap points over many years. Then settle when the yen has weakened. Since the profit per pip can be several thousand pips, you can expect substantial profits even with a small trading quantity.
However, this trading method has a problem. Once you settle, you earn nothing from that moment on. This issue isn’t limited to long-term trading; it’s the same in short-term trading as well. That said, short-term trading is literally short-term. The moment you settle, the next trade might be possible.
In the case of long-term trading, that’s not the situation. It may take one year, two years before a trading opportunity finally arrives. It has that nature. It could take more than ten years from starting a trade to settlement. Then it may even serve as retirement funds. Yet once you settle, your income stops from that moment on.
Assuming that even in old age you retain the same judgment and risk tolerance as when young is a bit optimistic. Having a zero position under those circumstances isn’t a pleasant situation. You might hesitate to settle because you don’t want to miss out on swap points.
While you are hesitating, the yen might appreciate, and in the end you’d have a trade with no rewards. Because you trade over time, it’s quite difficult to learn by repeating failures just like in short-term trading. Therefore, I will guide you through methods that are effective in avoiding such failures.
