With time frames this long, technical analysis is of little use, as it is mainly market fundamentals that cause long-term shifts in value. Therefore, it is vital that you understand how economic data affects the countries whose currencies you are trading, and their future economic outlook.
With these kinds of massive time frames, you need to have very large stop losses to avoid getting stopped out by short-term volatility, and you need to have a lot of money in your trading account or you may face a margin call.
In order to succeed with this strategy, you need to have a thick skin, because it is highly likely that your positions will move against you at some stage, and the chances are that these moves will be quite big. The size of these swings means that you have to trust your analysis in order to stay calm when things are going against you.
Position trading might suit you if:
You think for yourself, and are able to ignore the popular opinion and make your own judgements about the future direction of the market.
You have a strong understanding of the fundamentals, and an insight into how they will affect your currency pair over the longer term.
You can sit out big retracements without losing your nerve.
You have enough in your account to weather a move of several hundred pips against you
You are prepared to wait for a big reward. When you get it right, position trading can win you several thousands of pips with just one long term trade. If you find yourself wanting to close your trade whenever you get 50 pips profit, it may not be the style for you.
Position trading might not be for you if:
You tend to follow popular opinion with regard to the markets
You aren’t very strong on fundamental analysis.
You are impatient. It can’t be underestimated how patient you have to be in order to succeed with this style.
You don’t have enough starting capital.
You can’t hack it when the market moves against you
You thrive on seeing quick results, and while you might not mind keeping trades open for a few days, months or years is too long for you to wait for a reward.