I'm not sure I follow this type of thinking. I haven't found much difference in performance switching from day trading to swing trading/ position trading. (I'll stay with a trade as long as it is trending)
Entry and exir points am i getting this right?
- Thread starter mute9003
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I am not sure why performance hasn't changed for you.
For me, if I use a fast indicator designed to catch short-term trends (for example 10 days MA), I get a lot of entry signals, of which many are false signals due to noise. But over the course of a year, I can expect to take a few hundred trades if I trade a large number of markets.
When I use a slow indicator to catch medium-term trends (100 days MA), I only get an entry signal every few weeks for a single market. So over a year, I get less than 60 trades.
Given that trading strategies generally require a decent number of trades for its statistical "edge" to materialize, short-term strategies require less time to deliver performance compared to a slow strategy that only catches major trends.
If you use indicators or signals that match your strategy's trading timeframe in a consistent manner, you should see some difference in performance and the number of trades you take.
I believe you have given the reason above.
The long term strategy catches the major trends where as with day trading you are flat every night. The risk is the same every trade but the reward is much higher with a long term strategy.
I only need to catch a few stocks that take off to make a big difference to my account value. If I find a runner , I'll pyramid.