verry good post pipmutt, i can totally relate to it
it`s also consistent with the experience of the pros i read about...when the funds get bigger and they start trading on longer time frames, the percentage returns tend to get smaller.
The worst thing I can be is the same as everybody else. I hate that.
Pipmutt, true, but the irony is the more frequently you trade, the more important execution and spreads are. Yet, i'm fairly certain that the more frequent traders on FF are, the more likely they are to be using a bucketshop rather than ECN. In fact, if I could trade that graph, I'd be fully long.
It's surely only a matter of time before one of the brokers releases a high-frequency trading EA, and given that they actively encourage trading as often as possible (excessive leverage, competitions that make the X factor look like university challenge, multiple trade 'ideas' throughout the day etc etc), I'm only half joking.
Joined Oct 2008
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Status: Sentiment and Global Macro
|2,321 Posts
As long as both traders are profitable, then it doesn't matter. When questions like this arrive I have to wonder, are you looking for advice on if you personally should trade long term or short term? If that is the case it only depends on you, your skill level, equity, personal pain level for loss, etc...
Jhig - no advice been sought as I know full well (in this stage of my life and trading) what works for me....I was simply trying to approach the issue in a different manner hoping to help someone who may be in that given situation possibily before they actually have to start asking themselves when their account has blown up.
my bad for rehashing an issue that has been done to death in other threads...
Nihil inimicus quam sibi ipse Marcus Tullius Cicero
There's a logical reason why that could actually be true, and it often is.
A positional longer term trader might have to wait quite a while for a trade setup and then hold a trade for maybe weeks or months waiting for it to play out. He has to use fairly wide stops.
An intraday trader will obviously have more trade setups of smaller intraday moves. He will be using a tighter stop than a positional trader.
A scalper might make literally hundreds of trades each day with even tighter stops than the intraday trader.
Say for example a 10...
Ignored
Numbers wise you are correct however as you stated only a truly experienced trader will be able to consistently have a good return trading with a high frequency model otherwise the probability for a less experienced one to be blown out of the market trading too often is, in my view, far closer to certainty.
Nihil inimicus quam sibi ipse Marcus Tullius Cicero
the bottom line is...
if you want to know who the better trader is, take 100k of your money and decide which one you want to trade for you.
I bet you have a whole new set of questions you'd want to ask and one would be how much risk are you taking to get your returns.
