Long-term forex trading focuses on holding positions for weeks, months, or even years. This strategy requires a deep understanding of macroeconomic fundamentals, as it aims to capitalise on large currency movements driven by economic trends, interest rate differentials, and geopolitical developments.

A key aspect is fundamental analysis, where traders evaluate indicators like GDP growth, inflation, central bank policies, and employment data to forecast long-term currency strength or weakness. Unlike short-term traders, long-term traders pay less attention to minor price fluctuations and more to economic cycles and interest rate expectations.

Patience and discipline are critical. Long-term traders must withstand temporary drawdowns and avoid reacting emotionally to short-term volatility. Position sizing and risk management also play a crucial role in protecting capital over extended periods.

Technical analysis is still useful for timing entries and exits, but it takes a secondary role to macro fundamentals. Additionally, long-term forex traders often incorporate carry trade strategies, profiting from the interest rate differentials between currency pairs.

Finally, staying updated on geopolitical events and monetary policy shifts is essential, as such factors can significantly influence long-term currency trends. Overall, success in long-term forex trading depends on solid research, strategic planning, and consistent emotional control.