Time Horizons

Discussion in 'Trading' started by mgabriel01, Nov 16, 2007.

  1. Ok - so ......

    In my second week of this learning process (ok 3rd)
    So Im trying to get a basic understanding of the questions:

    when do I get 'in'
    and when do get 'out'

    The way I see it (as a noob) - and from reading lotsa lotsa really informative posts on ET the world breaks down into several groups -----

    The very short time horizon (day trading?)---- in and out in a matter of hours or even minutes. In this time horizon what are the typical considerations ----- price action only? specific chart patterns?

    I have read several threads that say - don't day trade options --- but I don't quite understand the reasoning behind the caution

    The 'fixed' time horizon - which looks like options trading -- fixed because of the execute timers and the time value of the security. This group seems to imply a firmer answer to the question 'when do I get out'

    The pretty short time horizon - days or weeks ---- which seems to be more an 'investment' plan than a 'trading' plan. Figure out when to get in --- set a goal that may take days or weeks to reach -- and get out when you reach it

    The pretty long time horizon - buy it (through an employer stock purchase plan or a 401k) --- forget about it cause you don't need the cash. Let it average up or down over time with additional contributions. And hope its worth enough when you need it before you die

    So far my entire portfolio has been based on the 'pretty long time horizon plan' ----- being a good corporate soldier for 20 years.
    its been fine ----

    but Im reeaaaaallllll interested in the other time horizons and how to work within them to make a profit

    hoping for some illuminating posts on this thread

    thanks in advance for your insights