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Why is short term trading so hard

  • #21
  • Aug 11, 2010 11:09am Aug 11, 2010 11:09am
Quoting medici
Trading is challenging because the normal human response is rarely the one that makes money.

This is especially true in intra-day trading. Trend-following techniques usually result in whipsaws and a slow decline of equity at best, because the market is usually not trending, and picking tops and bottoms may end the story even sooner.

Long-term trading, on the other hand, is usually based on identification of a trend and you enter on a pullback to trendline support, or something, with a reasonable stop and leave for a few days or weeks or months.

The...
brilliant response
  • #22
  • Aug 11, 2010 11:49am Aug 11, 2010 11:49am
Quoting medici
Trading is challenging because the normal human response is rarely the one that makes money.

This is especially true in intra-day trading. Trend-following techniques usually result in whipsaws and a slow decline of equity at best, because the market is usually not trending, and picking tops and bottoms may end the story even sooner.

Long-term trading, on the other hand, is usually based on identification of a trend and you enter on a pullback to trendline support, or something, with a reasonable stop and leave for a few days or weeks or months.

The...

Second that! Goes back to why traders need the higher timeframes to identify the trends. Great thing about the trend is, it's usually here to stay. Trends have the longevity to last weeks/months. And by using the higher timeframes to obtain a direction/market sentiment, it would be easy for a traders to pick entries on lower timeframes ... while only trading the direction of your overall market sentiment.

A great example would be EU, in the past few days EU has dropped but if you observe the higher timeframes, market sentiment is still BULL. By applying what we already know about the trend, we'd look to take advantage of it on the lower timeframes by only looking for Bullish entries. This can also be looked at on the basis of Probability. What direction would yield the higher probable outcome? Something every trader needs to ask him/her self before pulling the trigger on a trade.
  • #23
  • Aug 11, 2010 12:52pm Aug 11, 2010 12:52pm
Quoting Jhig
Second that! Goes back to why traders need the higher timeframes to identify the trends. Great thing about the trend is, it's usually here to stay. Trends have the longevity to last weeks/months. And by using the higher timeframes to obtain a direction/market sentiment, it would be easy for a traders to pick entries on lower timeframes ... while only trading the direction of your overall market sentiment.

A great example would be EU, in the past few days EU has dropped but if you observe the higher timeframes, [i]market sentiment is still...
fugly and Jhig,

thank you for kind words.

I use higher time-frames too, but some days are counter-trend days, and then I'd like to trade counter-trend as well - so not only in the direction of overall sentiment.

Don't know about your EU analysis. It's certainly been BEAR on my charts since before NFP. Have you had any luck with long entries?
  • #24
  • Aug 11, 2010 2:13pm Aug 11, 2010 2:13pm
Quoting finally
It really seems like this is the sucker bet of all bets
Well, well... It has to have some advantages, too.
For example the predictability of the movement should be greater, since, as with the weather forecast, with time errors in the projection will accumulate.
And, as the situation unfolds faster there are more opportunities.
The spread is one enemy of course, but consider using a non-spread based broker.
Personally I only trade short term.
  • #25
  • Aug 11, 2010 2:41pm Aug 11, 2010 2:41pm
Quoting m.m.m.
Well, well... It has to have some advantages, too.
For example the predictability of the movement should be greater, since, as with the weather forecast, with time errors in the projection will accumulate.
And, as the situation unfolds faster there are more opportunities.
The spread is one enemy of course, but consider using a non-spread based broker.
Personally I only trade short term.
Indeed!
  • #26
  • Apr 6, 2019 9:21am Apr 6, 2019 9:21am
Trading is hard.. if it's not everyone would be rich..
Time dose not matter its play only increase or decrease journey to blow a account .
Hard is R:R ratio to stick on...
Trade fearless not careless...
Syed Mohsin Ali Profit This Month: -1,310
  • #27
  • Apr 6, 2019 2:13pm Apr 6, 2019 2:13pm
Every way to make money is hard, what did you expect? A free launch?
When you see it, BET big.
  • #28
  • Apr 8, 2019 1:47am Apr 8, 2019 1:47am
Short term trading is very difficult because the spread is a very high percentage of your trade, as compared to long term trading. As a matter of fact, short term trading is far much riskier since it is subject to human mistakes and unforseen market factors
  • #29
  • Apr 8, 2019 2:53am Apr 8, 2019 2:53am
short-term trading may be very profitable, however it is able to additionally be risky. A short-time period trade can last for as little as a couple of minutes to so long as numerous days. To be successful at this method as a trader, you need to understand the dangers and rewards of every exchange. You should no longer simplest realize how to spot suitable brief-term possibilities however additionally how to protect yourself.
  • #30
  • Apr 8, 2019 3:00am Apr 8, 2019 3:00am
"Why is short term trading so hard" ?

Because it's banks and market maker territory.
  • #31
  • Apr 8, 2019 5:58am Apr 8, 2019 5:58am
Short term trading is kind of difficult since it has very strict parameters which many traders fail to adhere to, due to human error. For instance, if you get stuck somewhere and miss to place a trade, if you place the wrong trade, or If you sell instead of buying; you'll be bound to lose
  • #32
  • Apr 8, 2019 6:16am Apr 8, 2019 6:16am
If you have system and if you know how do hedge correctly short term trading is not hard. You can make a lot of money.

You have to watch the price action deeply. There is a rhythm in almost all instruments.
Go at least 1 year back on any given time period and see if you can spot similarities.
Watch the sessions, how it reacts to specific session.

Good luck, and never give up.
  • #33
  • Apr 8, 2019 10:22am Apr 8, 2019 10:22am
any kinds of short time trading approach particularly scalping always difficult and contains huge risk , for that reason it is more appropriate to avoid this approach without long time trading knowledge and experience.
  • #34
  • Apr 8, 2019 11:11am Apr 8, 2019 11:11am
who said short term trading is hard, you just haven't put in the work, set realistic goals, do your homework commit, believe yourself and you will start seeing results.
  • #35
  • Apr 9, 2019 12:20am Apr 9, 2019 12:20am
Quoting Semeg
who said short term trading is hard, you just haven't put in the work, set realistic goals, do your homework commit, believe yourself and you will start seeing results.
Any plan to tell or sell your conviction or its just a breeze thru the park enjoying the blast of hot air and bringing the secrets to the grave.

Hehe... new member huh? Same thing never change.
Lol.
  • #36
  • Sep 25, 2019 1:11am Sep 25, 2019 1:11am
I think the reason why short term trading is difficult is because you get less time to make decisions and hence you may end up taking bad and wrong investments decisions. Plus it is quite difficult to keep emotions out of your investment decisions when you have to make quick decisions.
  • #37
  • Sep 25, 2019 1:39am Sep 25, 2019 1:39am
I find watching the charts makes it much more stressful for me. I'm not sure why though. The brains a funny thing I guess.
  • #38
  • Sep 28, 2019 7:56pm Sep 28, 2019 7:56pm
I am attempting to short term trade or potentially scalp some of my swing trades to potentially increases profitability of my strategy seeing as its a different approach to swing trading so I would be using two different styles of trading for my strategy. I have been considering using around a 40 pip sl and a 80 - 120 pip tp. I feel like 40 pips may be a little bit to large because I sometimes don't get my tp hit during the session I am scalping say...London...New York...etc I am not sure what to do because my stop technically did not hit even though the session ended and I have been confused about if i should leave the trade open until the stop is hit or potentially close the trade at the end of the session regardless. 40 pips already feels like a pretty small stop loss for me right now it would be hard to imagine going under 40 pips say maybe 20 pips however I feel like potentially I could bring my tp to 40- 60 pips which could potentially be more of a short term trade set up potentially raise my volume a little bit since my stops will be tighter. My swing trades use a 200 pip sl so I am mainly just trying to feel everything out.
  • #39
  • Sep 29, 2019 3:26am Sep 29, 2019 3:26am
Quoting A320FX
I find watching the charts makes it much more stressful for me. I'm not sure why though. The brains a funny thing I guess.
Maybe; you don’t know the value of chart reading skill; till now Price Action is one of the best trading strategies in trading industry!
  • #40
  • Sep 29, 2019 6:01am Sep 29, 2019 6:01am
Why not use the the LTF to make your entry?
Use the HTF to find a good entry so the odds are in your favor
then you go below that so you can reduce your risk/stoploss
to have a better R/R.

The more you can see the bigger picture, the better the follow through the result becomes.
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