Long-term investments in various assets have always been a key factor in the increase of the capital by the richest people in the world. And not only by them. More and more investors become aware of the benefits of long-term investments and are willing to wait for profits from them for several years.
Is Forex market an exception?
No, it is not and it should not be an exception!
Recently, one of the richest men in the world Warren Buffett once again shared his thoughts on the investment. The head of Berkshire Hathaway said that even in the midst of the financial crisis of 2008, when most rushed in panic to sell stocks and other assets, he and his partner Charlie Munger, gritting their teeth, kept waiting. As a result, impaired assets increased significantly in price during next few years and the company has received more than just solid profits.
Over the last fifty years, this strategy has brought Warren Buffett 1,826,163% profit. Annual growth of his company is about 21.6%. These figures are really impressive. Of course, not everyone can achieve similar results, but everyone can adopt a strategy of long-term investment and increase the size of almost any initial capital.
So how can we use the strategy of Warren Buffett in the financial market Forex?
Invest at least $1500 for a long-term.
To start with the strategy you need to tune in to a fairly long period of investment: 1 to 2 years, and possibly longer. We are well aware that those, who are used to open a hundred transactions a day, will be shocked by such a proposal. But precisely because of their enthusiasm over intraday trading, most of them leave Forex market with nothing. The ideal amount of initial investment is from $ 1,500 to $ 2,000 (depending on the chosen currency pair), but if you do not have this possibility, then PaxForex will help you get started with more modest investment.
Next you need to make your investment plan and follow it precisely. Its essence: you should regularly, monthly or quarterly, add an extra amount to the basic that already invested. You can add additional 10% or more for such purposes. The sum may vary as you wish but the important thing here is regularity of additional investment. This will allow you to continuously improve your winning position.
Why your position will be winning? Because the proposed strategy is composed in such a way that in almost 100% of cases you will be the winner in the long run. You can completely lose your deposit only if one of the currencies will fall completely. And such a course of events in the modern economy is incredible when it comes to major Forex currencies.
For getting an individual investment plan together with description of our trading strategy, please register a trading account with PaxForex and our managers will contact you.
Forget about leverage.
Another rule is complete rejection of using the leverage that together with using our strategy reduces the risk of loss of funds to almost zero. Also, you will trade on your own money only, which is also a great advantage. Thus, forget about the leverage.
After all of the above you will only have to wait patiently, not even paying too much attention to the times of volatility. Depreciating assets have historically shown good growth, so that even in such situation the trader will benefit. Also, without leverage you will have much more possibilities to maneuver if the need arises. The main thing here is completely avoid panic during temporary market fluctuations. Warren Buffett said: "Do not confuse ups and downs with the risk."
There is a big advantage in this Forex trading strategy over the stock market. The fact is that even the most successful companies’ shares may depreciate almost completely. But with such giants as USD or EUR that can happen only in the imagination of the creators of science fiction films.
There is another big advantage - it is the historicity of the moment, which should not be missed. Now it primarily refers to the pair EURUSD, which now provides tremendous opportunities for long-term investment.
And finally, another good thing about long-term investment is your time because by using this strategy you do not need to spend hours at the computer screen. You will have so long desired time for your family, loved ones and friends.
For getting an individual investment plan together with description of our trading strategy, please register a trading account with PaxForex and our managers will contact you.