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Medium term trading and why it’s better than short term trading.

Right now I have 3 trades on, GBPAUD 53 pips the wrong way opened last night 21:04 pm, USDCHF 9 pips the wrong way and AUDUSD in profit by 3 pips.

.and  I don’t care.

But Why?

  • The trades placed outside of the EUR/NY trading times (GBPAUD and USDCHF) I fully expect to go the wrong way during the EUR/NY session – then retrace back to the right direction.
  • Yesterday I closed an AUDNZD trade 140 pips that took two weeks to get there, for 3 days it was not in profit!
  • I want to go for bigger profits, that means bigger stops and waiting, it means trading from daily charts. Which means that I don’t have to put up with the noise of the 15 minute chart.
  • My whole SignalTrader Forex trading system is based on longer term trading. This means I only have to be “generally right” rather than right for the next hour.

Let me show you my losing GBPAUD trade. STROBOT took the long trade at 1,82432 the currency pairs had crossed so AUD was weaker than GBP. However notice how both the 200MA and the 50MA are pointing up and the price is above the 50MA.

So I’m pretty sure that actually the pair will go in the upward direction. Even though it’s slow and may take a few days to get there – but that’s ok. I’m not stressed or flustered. This trade has 126 pip target. The other two trades are ok – they’ll get there too.

So there you go – learn to trade the dailies! – just like Strobot.

UPDATE

The GBPAUD pretty much retraced all the way back up.

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