A long-term forex trader, also called positional forex trader, is someone who buys particular currency units and sells them after a period; commonly, he's the type who purchases currencies based on desired outcome and sells based on market facts.

Tom is a foreign exchange trader; he invested in the GBP (Great Britain Pound).

One day, unfavorable news (to the GBP) is released. According to the release, a trade deficit, which is one of the common causes of currency exchange rate depreciation, has been identified. Consequently, the currency unit will depreciate and the particular devaluation is said to continue for a streak.

Regardless of the unwanted release, Tom remains collected. He takes note of the particular market activity and remembers it six months from the day of its occurrence; only when he's set to sell the GBP currency does he ponder on the minor crisis' impact.

By the looks of it, Tom is qualified as a successful long-term forex trader.

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Qualifications

A long-term forex trader, also called positional forex trader, is someone who buys particular currency units and sells them after a period; commonly, he's the type who purchases currencies based on the desired outcome and sells based on market facts. He is determined to anticipate the value (of his selected currency unit) to increase over time. During the process, he keeps tabs on market activity regularly; he will eventually use it as a basis when he plans to trade his units and exit the forex market permanently.

A keyword in long-term trading is "investment", instead of concentrating merely on small gains, you use effective strategies that may mean taking in small losses that can hopefully result in big wins. Since your target is to profit after some time, you remain persistent; you strategize with regard to the effort, resources, and money management skills you put in. 
A trader is a long-term forex career if:

  • He assesses total revenue, rather than immediate returns
  • He holds the same short position (i.e. keeps bought currencies in his portfolio) for weeks, months, or even years
  • He regards low pip gains and interest rates
  • He regards market volatility, market liquidity, and sudden price fluctuations

 

Trend-Following as a Strategy

A long-term trader has the tendency to pursue market trends; in fact, he is known to select a particular trend and monitor it for a while. An advantage of his trend-following approach is the ability to properly evaluate the strengths and weaknesses of a trend; he can eliminate market noise and he is rid of impulsive chases. Since he is set on observing the market pattern for a preferred period, he can formulate more accurate predictions; he can determine whether a trend is worth following or it's rather misleading.