What are the pros and cons of short-term trading versus long-term trading?

Discussion in 'Professional Trading' started by helpme_please, Aug 22, 2015.

  1. You missing the main points for ST vs LT.
    LT will have edge in nature if you don't do something stupid, not for ST
     
    #11     Aug 22, 2015
  2. Turveyd

    Turveyd

    1. the longer the term, the closer your profit rate will become to 50/50
    2. Longer term gives you more time to think / plan, M1 is reacting and thinking fast and on your feet, 5 seconds is enough for a trade to be forgotten or lost.
    3. Longer term, due to the 50/50 factor will make or lose a smaller % of your account. ( Losers prefer Longer, they lose slower and vice versa )
    4. Longer term, due to the 50/50 again, losing traders will be nearer the 50/50, so yet again bad traders will prefer Longer term, short term 80% win rate is possible and 80% lose rate ofcourse.
    5. To get rich from nothing, master the M1, to build on existing wealth Longer term is fine.
    6. Short term, you can have 20 trades in a day, therefore richer or poorer faster.

    The 50/50 is your random chance, ( luck for some ), bad trades have enough wiggle room to hit the TP ( Vice Versa ), short term your pretty much right or wrong, there is no room for error and very little room for the market to change to get you out if wrong.

    It's not the TF you trade which is the isssue, it's the SL size you trade!
     
    #12     Aug 22, 2015
  3. carrer

    carrer

    Mind to elaborate what is 'edge in nature'?

    As far as trading is concerned, edges could be found on both ST and LT.
     
    #13     Aug 22, 2015
  4. i960

    i960

    No issue with either timeframe but we should be clear here: time is money.

    You cannot get your time back.
     
    #14     Aug 22, 2015
  5. Visaria

    Visaria

    the time period is actually a red herring: what is important is the size of the moves that you need. If you can achieve big moves in a short time period (e.g. daytrading in 2008 or daytrading nasdaq stocks in the 1998-2000 era), then great because you can make money faster. However in 'normal' trading, the larger, profitable, more predictable moves are in bigger time frames.
     
    #15     Aug 23, 2015
    i960 likes this.
  6. Pros & cons of long term vs short term trading?

    I made over $782,000 profit from one position initiated on Sep 15 2014, covered a few months back for over 4200 points in total:
    XINA50-trade.png

    Averaging not less than 175 lots. Up to 220 lots at times. Trading around position.
    Several rollovers

    Where are the (INTRA)day traders with at least $1 million in accumulated EXTRACTED PROFITS from the markets (even after several years)?
     
    #16     Aug 23, 2015
    redbaron1981, i960 and Visaria like this.
  7. Turveyd

    Turveyd

    Seriously, does anyone actually believe anyone in retail has a) the skills and b) that kinda capital at risk.

    Photoshop, we are all fully aware of it!
     
    #17     Aug 23, 2015
  8. i960

    i960

    This is XINA50 back during the parabolic Chinese climb. Each lot is 2k margin so I do think this is possible with someone who recognizes the situation and has the margin to back it up.
     
    #18     Aug 23, 2015
  9. kut2k2

    kut2k2

    Yes. Seriously.
     
    #19     Aug 23, 2015
  10. Visaria

    Visaria

    fine, give me an example of both pls.
     
    #20     Aug 23, 2015