I would like to ask the elite traders here who have been there done that, tried both short-term and long-term trading, what is your preference? Why? Advantages and disadvantages of each approach?
What are the pros and cons of short-term trading versus long-term trading?
- Thread starter helpme_please
- Start date
There are no advantages for long-term trading.
(Just my personal opinion...not interested in debating this.)
To make a sports betting analogy... when you place your bet...you basically want to see the Results Now...not in two weeks, or two years+
Even just watching a daily chart during the market hours feels too long/boring.
I wish I could fast forward the future/trading day into like 1 hour only...and make my adjustments/bets accordingly.
(Just my personal opinion...not interested in debating this.)
To make a sports betting analogy... when you place your bet...you basically want to see the Results Now...not in two weeks, or two years+
Even just watching a daily chart during the market hours feels too long/boring.
I wish I could fast forward the future/trading day into like 1 hour only...and make my adjustments/bets accordingly.
Last edited:
Know thyself. I traded intraday (1 minute charts) for many years and did OK - small losses larger gains, net ahead. I gravitated over to long term (daily and weekly charts). It feels like everything is the same, except in slow motion. I can think about a patern for a couple of days that used to require a decision in 2 minutes. Personally, I love that. Having said that, I wouldn't give up those years of intraday trading, they were invaluable experience. It would have taken me 255 years of long term trading to get the same experience. Nor would I want to go back to that life-style.
1. Short-term (ST) will make you pay more commissions per trade.
2. ST trades more frequently, hence, make more money in the same period of time compared to long-term (LT), assuming that risk per trade are the same for both.
3. ST is relatively more stressful. More time spent on trading/screen-time.
4. ST charts can be more volatile or unpredictable as compared to LT.
5. ST may have liquidity issues on certain markets.
2. ST trades more frequently, hence, make more money in the same period of time compared to long-term (LT), assuming that risk per trade are the same for both.
3. ST is relatively more stressful. More time spent on trading/screen-time.
4. ST charts can be more volatile or unpredictable as compared to LT.
5. ST may have liquidity issues on certain markets.
1. more commission in total, not per trade. in fact, per trade might be less due to volume discounts
There are no advantages... nor disadvantages - they are different..., with their own nuances
=============================
A true comparison; the same trader would need to trade the same instrument..., over the same time period..., with the same account size
Any thing else is simply conjecture (BS)
But what the hell.., comparing does make for talking points
RN
I was not being clear sorry. What I actually meant was this:
Let's say our short-term system averages about 10 points profit and our long-term system averages about 100 points profit. In terms of percentage, the commissions would be more for the short-term trades.
Long-term trading appears to be more profitable overall. LT trends are more dependable, ST trends are subject to more chop and more randomness. Not sure increased frequency of trading makes up for this in the short-term.
Certainly less stressful trading eod than trading 5-minute or 10-minute data. Also less chance of some pos MM running your stops.
Certainly less stressful trading eod than trading 5-minute or 10-minute data. Also less chance of some pos MM running your stops.
Last edited:
Longer term is more suitable for me because i don't want to sit in front of a screen all day and like reading about wider economic issues and companies. You can make money in both but I think its more difficult in the shorter timeframe when you start because there is a good chance your emotions will screw you up. However if your just looking for fun and excitement thats the place to be.