No one seems to get it. Transaction costs are peanuts compared to the compounding effect of short-term trading. If you are really good at it.
And that's the catch. Being really good at short term trading. That is a particular skill set not easily mastered these days with a mouse and a price ladder. The bids and offers trade out SO fast and the "noise" makes holding a position tough for most mere mortals.
I feel like I've been here before....discussing all this....this time with a fresh set of newbies. I'm out.
not talking about 1 or 2 tick manual hft scalping. Talking about 1 to 8 points in Es. Don't need price ladder for that.
Nothing is for certain but past performance can be somewhat indicative of future performance regardless of what the disclaimers say......ROFLMAO....OR backtesting is pigwash..and a waste of time. TA.....a waste of time. Fundamental analysis...a waste of time...ET a waste of time...algo...a waste of time...hft's a waste of time...history a waste of time...trading a waste of time....i suppose you will arise tomm and put your pants on and shoes on and brush your teeth and comb your hair....at least we hope you do because you have done it in the past. Your past win rate across different market conditions over a long period of time can be indicative of your skills and hence your future IN TRADING....LOL If you don't know yours then you may not be trading or trading but not tracking....what you can't know is IF you will be here tomm. Life is short and uncertain but within the ocean of uncertainty there are rituals and patterns and cycles that repeat over and over again and again.
Keeping only what you need in your account for your style of trading helps to force one to be disciplined and keeps one constantly be aware of how fast money can slip away. And how fast it can be made. Plus tends to cut down on revenge trading and trading too big.
I see it as exactly opposite. It is easier to short-term trade than long term. Plus it is less risky. But i admit...i am abit of a rebel to tradition. I question deeply most pundits advice.
Interesting, but I believe the opposite. One example is the long term upward drift in the equity markets--there is no such advantage in the short term. Not to mention, u can risk smaller size and ride for massive gains if/when u hit it correctly in a trending market. surf