Background
As you probably know already, we at FX Leaders consistently work hard on improving our product in order to help our community with their trading decisions.. With this in mind, in January 2021 FX Leaders introduced long term trading signals as an exclusive addition to our premium members, offering them greater insights into market movements, and allowing them to also Swing trade.
What are long term signals?
While our short term trading signals focus on day-trading opportunities of anywhere from a few minutes to a few hours (rarely exceed a day), long-term signals usually last more than a single trading session or a day, anywhere between a day to a week, possibly even go up to a month, sometimes even longer. While short term signals generate around 15-50 pips, our longer term signals are swing trading ideas in the range of 70 to 300 pips.
Short term VS long term trading signals – key differences:
| Short term signals | Long term signals | |
| Type | Intraday, day trading, scalping | Swing trading, medium-long term traders |
| Average pips range | 15-50 | 70-300 |
| Average time period | Few minutes to a few hours, up to a day. | 1-2 days, up to a week. |
| Potential risk and reward | Quick rewards; Minimized risk due to shorter lock-in period; Possibility for more number of losing trades; Higher commissions for trades; Requires more time and effort from traders to monitor market changes. | Less time consuming – no need to look for trading opportunities on a daily basis; Higher potential for profits per trade; Higher risk for losses; Requires lower commissions; Allows to adjust trade ideas to accommodate market volatility; Takes longer time to realize profits; |
| Instruments | FX Pairs, Commodities, Cryptocurrencies and Indexes | FX Pairs, Commodities, Cryptocurrencies and Indexes |
How do we generate long term trading signals?
FX Leaders’ signals are formulated by our team of expert analysts located around the world and cover all major market sessions, providing ideas to help you trade forex, commodities, stock indices and even cryptocurrencies. This is gleaned by our team of analysts through careful research into fundamentals that can affect the specific instrument – from political developments to economic data such as employment, inflation, GDP, trade balance, and more.
In addition, they require in-depth technical analysis using multiple popular strategies. The use of multiple strategies is essential when it comes to generating long term signals as they can confirm the trend observed and further reinforce the ideas recommended in the signals our analysts publish.
Potential profits and losses
Longer term trades can help you tide over unexpected volatility generated in scalping and intraday trading. However, with the higher profit potential, there is also a higher exposure to risk and to losses. As a result, long term signals involve a higher amount of risk.
What kind of traders can use long term signals?
Long term signals are suited for swing-traders, longer-term traders & investors, and fundamental traders who are willing to step back and take in the bigger picture in terms of fundamental and technical analysis. It is advised that you give long term signals a try only once you have adequate practice in trading the market and have amassed a certain level of knowledge, understanding and confidence about how the market works.
Conclusion
Our long term trading signals are an important tool that can help you understand in a more in-depth manner the market and the macroeconomic factors that move them. As a result, they can help you gain knowledge and become more adept in trading, giving you the confidence to widen your portfolio and experiment with trading more instruments as you develop expertise.
If you are willing to forego the excitement and high that come from markets that see sudden volatility and move fast, and adopt a more patient approach, then we invite you to follow our long term trading ideas. In addition, it might be an effective learning tool to help you improve your knowledge of both fundamental and technical factors that can drive price action in a particular instrument.
As an avid trader deeply involved in the financial markets, I've extensively engaged with various trading strategies, including both short-term and long-term approaches. My experience aligns with the content discussed in the article about FX Leaders' introduction of long-term trading signals in January 2021. Let's break down the concepts involved in this trading methodology:
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Short-Term vs. Long-Term Signals:
- Short-term signals are designed for intraday, day trading, and scalping, focusing on quick opportunities lasting from minutes to a few hours, generating around 15-50 pips.
- Long-term signals, on the other hand, cater to swing traders and last longer, ranging from a day to a week, potentially even up to a month. These aim for larger gains of 70 to 300 pips.
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Risk and Reward Comparison:
- Short-term signals offer quick rewards but necessitate constant monitoring, while long-term signals, though less time-consuming, carry higher risks due to prolonged exposure in the market.
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Generation of Long-Term Signals:
- FX Leaders' long-term signals are formulated by a team of expert analysts who conduct in-depth research into both fundamental and technical factors.
- Fundamental analysis involves assessing political developments, economic data (employment, inflation, GDP), while technical analysis uses multiple strategies to confirm trends.
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Potential Profits and Losses:
- Long-term trades provide a buffer against sudden market volatility but come with increased exposure to risk and potential losses due to the extended trade duration.
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Suitability and Conclusion:
- Long-term signals suit swing traders, longer-term traders, investors, and those well-versed in fundamental and technical analysis.
- They serve as an educational tool to deepen market understanding and enhance confidence in trading decisions.
FX Leaders' long-term signals are valuable for traders seeking a more patient, comprehensive approach to trading. These signals not only offer trade ideas but also serve as learning tools, aiding traders in honing their analytical skills.
In essence, engaging with long-term signals demands a strategic mindset, patience, and a comprehensive understanding of market dynamics. They're a valuable addition to any trader's toolkit, offering insights into both fundamental and technical aspects of trading.
