How is it not as risky? The shorter time that you spend in the market is more than offset by the extra risk that you take with the crazy leverage. With crazy leverage all it takes is a move like the EUR/CHF slam that we saw a few months ago and you are done. Gunning for a bigger move with low leverage is the only way to go for retail traders, don't try to steal HFTs' cheese or you will regret it.
as described, longer-term holding does not have to mean wide stops. I use the same entry logic for one of my longer-term strategies. If momentum holds I reset my very tight stop to entry, essentially removing any remaining risk in the trade. Many of such trades stop out later on but the occasional one turns into a home run, exactly the intent of that strategy.
in a trade, yes. That is why I enjoy ranting on the politics boards. If you do not like my advice on the technical and trading side then feel free to ignore, no hurt feelings
Well actually holding period does affect this relationship because time in the market = risk, holding a position overnight alone exposes the trader to more risk because he cannot control risk adequately (due to possible gaps).
wasn't aware you were giving me advice, but I agree with you on another post, "long time frames don't necessarily mean wide stops." but getting back to op, you and I both know it's a bunch of shit. Just something to play around with when the swing trades aren't swinging.
I know thats why I'm only dedicating 10-20% of my account to it. On a side note i don't "play" with trades, ill never enter one that I don't have strong conviction on. Thats why I end up waiting days or weeks for a good swing trade. But this way I wait a couple of hours maybe and catch 1 trade during the day. My conviction is just as high as my swings, its not like I'm just hitting buy and sell multiple times a day like a maniac.
I have a trend strategy which I have developed over the years. I am constantly tweaking it, usually to my demise. But it goes through very large drawdowns and endless day after day markets that just can't seem to trend to get me out of the drawdown pit. That's when I get bored and frustrated and just put on the opposite strategy in my paper account. At first it beats the hell out of anything I have been trading for years. But very shortly, all I am left with is big losers and small winners, and by then, the trend trading strategy is finally working again.