It is obviously a difficult subject. The way it works for me is to use different systems, based on different timeframes. I have two swing systems (1 week - 2 days) and one day-trading account. The fact to have the two swing trading systems largely mechanical helps me to focus on the day-trading. I just like to diversify and using different time-frames is one way to do it.
At the moment, I trade currencies with a hold period of about 20-30 days. I do have a growing number of intraday systems on my computer that would be profitable if I could only overcome the fees. Ideally, I would love to have a system that wrings out all the profit in a market (intraday) and trades a large, statistically signifigant number of times each month so that I could manage them better. As it is, I have to back test over many years and wait many months in order to determine if my systems are or continue to be profitable.
I started with daytrading (QQQQ only). After 9 month daytrading I started to see a bigger picture. So I started to swing stocks (hold em for a couple of days). 2006 I started 30 times bigger. Daytrading is no longer an option (because of execution). So I am now moving into bigger timeframes... Really enjoying... The hardest was (and is for me now) the 'transition' period when you change styles You have to learn how to hold positions all over again Another annoing thing is the cost of mistakes when trading long term - the frequency of opportunities that come across is much lower than with daytrading - you cant afford to miss an oppotunity and you cant afford to fuck it up once you caught it...
I have first learned to scalp listed stocks (NYSE) at ETG in New York City on on the commodites exchange floor (Chicago). ... NOW.. since I mostly trade my IRAs I do not have a choice but to swing trade and position trade, I must say I have no regrets at all. My trans costs are minimal, no business expense of dual broadband, multiple screens redundant processors and other crap! I live simply, I do not even need CNBC Whatever I make is tax free - I can withdraw it at age 57 1/2 for TAX FREE and do not even need to move offshore....
================= Interesting timing, do about 90% swing/position; but closed a NYSE short daytrade in oilgas sector today, who wants to take that home over night with Iran Iraq up spikes likely/lately Extra records to be sure,; requires more ink also:, seems to be well worth it.cool: Threre is an insurance premium for taking a position home/swing/position trading. Understandable some daytrading companies not allowing it ; especially with much leverage
You can incoporate the two into one strategy - trade off the intraday and hold for several days. Works well.
I assume this question makes sense only for technical (as opposed to fundamental) traders. Considering the quasi-fractal characteristic of the price-time chart, trading the 5 minute chart can increase your profitability about 8 times compared to trading the daily chart. This is limited by your ability to make quick decisions, and by your trading costs (slippage and commissions). Intraday chart trading also offers the advantage of avoiding the "overnight" trading discontinuity. Trading liquid markets, lowering your trading costs, sharpening your trading skills, and increasing your confidence in yourself allow you to trade smaller time frames and increase your returns. The drawback: you'll work more intensely.
Holding positions overnight is more profitable than Day-Trading, you have to realize that big moves (positive or negative) happen overnight. Look at the historical prices of any ETF like SPY or any commodity and check the previous close and the next opening for a long period of time and you'll see how profitable is to hold overnight. You can also get blown, but markets tend to have a positive bias, so is always safer to be bullish.
forgot to mention. I'm a Day-Trader and scalp the market for a living. But when I see a stock making an heroic close I like to buy it, hold it overnight and sell it at the opening bell. It works more often than when it doesn't.