In Lena's Fundamental's chat yesterday (17 Nov, 20:00 EDT) I mentioned that right now I'm kind of nervous about having a long-term USD position. On the one hand, many USD pairs are seeing historical lows for the USD, which may act as a psychological barrier. On the other hand, the US economy is still bad and it doesn't look like there will be significant improvement anytime soon, so this fundamental indicator suggests that the USD will continue to sink lower, especially as other economies pick up and increase interest rates to stave off inflation abroad. (I live in the US, so the US is home and everywhere else is abroad in my posts).

Another factor to consider is risk appetite with respect to the USD being (at least for now) the world's reserve currency. This is a concept I am still wretling with to understand. This lack of understanding is another reason I am nervous about long-term USD positions. The old rule of, "If you don't understand it, don't put your money there."

So, now I'm considering looking at some major crosses to consider long-term positions in while at the same time avoiding USD exposure. My normal trading is during the Asia market - I usually start my trading session around 18:00 EDT and end around 21:00 EDT. Some times I'll check positions and adjust stops or manually realize gains at random time intervals until about 05:00 EDT.

Given this, for long-term positions should I still be looking at Pacific Rim pairs like EUR/JPY, AUD/JPY and NZD/JPY since these are likely to have higher volume or should I also look at pairs where both sides are closed for business (i.e. EUR/GBP or EUR/CHF) and try to avoid the business hour volatility noise?

So far I've done mostly short-term trades, ideally either being closed out or having stops in the profit by the time I end my session. However, I have been noticing that the trades I let run overnight generally see more pips movement. So I'm wondering if I should maybe add some longer-term trading to my Forex portfolio.

Maybe go back to 1 lot positions while I learn long-term trading. I also think I might wait a week after the margin rule change to have a better intuitive understanding of how the new margin rule will impact my trading.

This is kind of open ended, and I'm looking forward to any comments folks here might have.

Thanks!