Can Short Term Trading Be More Profitable Than Long Term

[galvinlee888]

Well, as I stated before: you only need money to trade, intelligence, being able to read plain english language, independant thinking .... is not needed. That results in people who post nonsense.
Thanks for your help to demonstrate this.

And I even doubt if Galvinlee actually trades. I hope for him/her he/she is not.

Still not giving up your day trading ? Keep losing money and don't know why ?

 

[i am nobody]

Still not giving up your day trading ? Keep losing money and don't know why ?

Look up QUIBBLING

And don't project your(in)abilities on others.

Still waiting for your trades that show that making money is impossible.

On second thought: I put you on ignore. You should find somebody else to play your childish game.

 

[galvinlee888]

Look up QUIBBLING

And don't project your(in)abilities on others.

Still waiting for your trades that show that making money is impossible.

On second thought: I put you on ignore. You should find somebody else to play your childish game.

Keep on your arrogant behavior, we all know where this type of amateur trader end up with.

I been trade for living for many years (not day trade) and I have a comfort life from trading.

 

[kut2k2]

... a trade with risk/reward of 3:1 (risk 1, reward 3) with 50% win rate, the expectancy over infinite repetitions would be a profit of 2 units..

The expectation is 1 unit per trade: 0.5*(+3) + 0.5*(-1) = +1.

 

[Redneck]

By short term I mean catching the big moves that happen intraday and by long term i mean 1 day+.

Since most of a particular assets daily movement occurs with a very short time period for example EUR/USD mover 100pips in just 1.5hours. The rest of the day it just moves slowly back and forth.

Using tighter stops and higher leverage than you would if you were trading a longer period time frame.

I normally trade long multi day time frames but I set aside some funds for a short term strategy, besides the added screen time waiting for momentum to develop I feel my capital is safer with a shorter holding time.

What do you guys think ?

First let’s ensure we’re speaking the same language


Short term trading = intraday…, no holding over night

Long term trading = a trade spanning days…, even one..., to a couple of weeks

=======================

Yes…, short term trading is more lucrative

Intraday – one has the opportunity to catch the intraday bidirectional moves

Longer term trading – one is in from A to B (where ever A & B happen to be / end up)


Fact however; we are at risk every time we enter - so by default..., short term trading is inherently more risky

===========

The true (and only real) test - would be;

The same trader…, trading the same instrument…, utilizing the same size…, over the same time span..., trading both approaches simultaneously

Discussing/ doing anything else - is simply an academic exercise in mental masturbation – at best

RN

 

[trickshot]

1. Most people who don't succeed blame it on anything but themselves. Because admit they are not succeeding is bad for their ego. Failure is never pleasant.
2. If you make claims, you should proof it too. It is too easy to bash on others. But I see no proof. Proof means show that you are a good trader but that it is impossible to make money. But the contradiction is that if you were a good trader you would make money.
3. Slippage and commission can cost you maybe 15-25$ per trade. If you cannot make more than that in a trade you have a problem. The problem is you, not the slippage or the commission.

$15-25 is massive in terms of frictional cost if you are talking about the ES, the typical day trader makes several trades a day so costs add up quickly.

It doesn't take much to destroy a day trader, afterall casinos only have a very slight house edge in games like blackjack (0.28%), yet they always win over the long run because the same house edge multiplied over thousands of bets is devastating.

Day traders need very large positive expectancies to overcome the very high costs involved in day trading, its extremely difficult and the vast majority won't make it.

 

[Autodidact]

$15-25 is massive in terms of frictional cost if you are talking about the ES, the typical day trader makes several trades a day so costs add up quickly.

It doesn't take much to destroy a day trader, afterall casinos only have a very slight house edge in games like blackjack (0.28%), yet they always win over the long run because the same house edge multiplied over thousands of bets is devastating.

Day traders need very large positive expectancies to overcome the very high costs involved in day trading, its extremely difficult and the vast majority won't make it.

A combination of statistical studies, self fulfilling prophecies, money management and some decent price action knowledge and you stand a chance.

It takes work, balls, discipline and dedication, most lack one or more.

You might ask yourself why balls?

Because a 1 lot future trader or someone trading 100 shares of FB is not going to get very far, because once you make it the net per week, notice i said week, not day, is quite small.

 

[MMtradex]

I don't think that intraday trading is the most recommendable trading for newbies and for those who trade with low capital. However, intraday offers great opportunities for good profits if you know how to trade with consistency.

 

[i am nobody]

$15-25 is massive in terms of frictional cost if you are talking about the ES, the typical day trader makes several trades a day so costs add up quickly.

Day traders need very large positive expectancies to overcome the very high costs involved in day trading, its extremely difficult and the vast majority won't make it.

You should only know the answer to 3 questions:

1. what is my average profit per winning trade.
2. what is my average loss per losing trade.
3. What is my win rate.

If you make 4 points in a trade, 25$ represents only 12.5% of your profit. So net profit is 87.5% of brut profit. Not massive too me, nor the very high costs involved in day trading.
And if you do more trades a day, with each trade you make again 87.5% profit. More trading should mean more profits, if this is not the case it proves that you cannot trade.

If you make less than 1.5 point per trade you should improve your trading or stop trading.

All depends of the answers to the three questions above. You can calculate in advance what your chances are.

Can you show me trades like those you are speaking of? Then we can see what the problem is. Costs or the "trader".

 

[dbphoenix]

There is a tendency to equate daytrading with scalping, or trading the ladder. But even if one ignores the fact that the futures market is 24hrs, not 6.5, there are plenty of "big moves" available if one (a) knows what to look for and (b) is willing to wait for it.

Yesterday, for example:

3 trades.

One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do. Most people always have to be playing; they always have to be doing something. They can't just sit there and wait for something new to develop. I wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime. Even people who lose money in the market say, 'I just lost my money, now I have to do something to make it back.' No, you don't. You should sit there until you find something.

-- Jim Rogers