Long-Term Position Holding Opportunities in Forex? Possible!

Dismissing a trading strategy in one market just because it cannot be as profitable as one would expect it to be in some other market is probably not the wisest of the Forex traders’ popular conventions. “Buy-and-hold” strategy is a victim of one such convention. Sure, you cannot rely on it the same as in stocks. Sure, it is hard to manage risks as there is no optimal stop-loss area. But despite these drawbacks, buy-and-hold can earn trader substantial profits if done right. You can read more about it in a freshly added strategy description:

  • Buy-and-Hold
  • By the way, another example of an interesting (and ongoing) long-termbuy-and-hold opportunity is shorting of the USD/HKD currency pair. With Hong Kong dollar being about 44% undervalued (according to PPP) there is a significant chance for a slight reduction of the current peg to US dollar. Considering a rather low level of volatility of the pegged pair the risk can be easily limited. A huge disadvantage here would be an indefinite (probably, very long) holding period.

    If you have suggestion or questions regarding the buy-and-hold Forex trading strategy, please feel free to submit them using the form below.

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