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Long term Vs Short Term Trading

  • #21
  • Dec 12, 2013 1:04pm Dec 12, 2013 1:04pm
Quoting 60minuteman
short term is often chosen because it panders to the natural urges that cause most to fail, they want it fast and big... Consistent is the key element. If you trade h4 bars you find yourself stepping away from the charts and less lightly to make trader errors and bad judgement, and therefore consistency comes easier.

I think I agree with everything you say. The problem with trying to catch intraday moves is that one is inevitably going to trade too often and start getting hit with losses - it's just so difficult to watch many different trading pairs all the time and if one tries to constantly watch the screen one is tempted to close winning trades prematurely.
  • #22
  • Dec 12, 2013 1:37pm Dec 12, 2013 1:37pm
I'd have to say Short/medium term - many more opportunities available and keeps me from getting bored (which may lead to being too eager to get in the market).

Admittedly, I have started completely avoiding anything less than 15m and generally focus on the 30m/1h. My trading success has improved immeasurably and I no longer feel the urge to keep jumping to the 5m to "time my entry". (That tendency often lead me to try to jump in with a trade to catch an early 10 pips.)

I suspect a good TF is one where you're willing to let 2-3 bars evolve before you get into a position. Therefore, using a 4h TF and waiting 8-12 hours to see how the price moves when on the verge of a reasonable signal is far too much waiting for me. I'd rather make a couple of attempts 'inside' those 4 hour periods.

In any case, trading on a shorter TF doesn't stop anyone from trading the longer TF's, which is nice. :-)
  • #23
  • Dec 12, 2013 3:50pm Dec 12, 2013 3:50pm
Quoting Nefser
I'd have to say Short/medium term - many more opportunities available and keeps me from getting bored (which may lead to being too eager to get in the market). Admittedly, I have started completely avoiding anything less than 15m and generally focus on the 30m/1h. My trading success has improved immeasurably and I no longer feel the urge to keep jumping to the 5m to "time my entry". (That tendency often lead me to try to jump in with a trade to catch an early 10 pips.) I suspect a good TF is one where you're willing to let 2-3 bars evolve before...
you are just the same as me.
  • #24
  • Dec 13, 2013 3:42am Dec 13, 2013 3:42am
Quoting jmtini
{quote} I think I agree with everything you say. The problem with trying to catch intraday moves is that one is inevitably going to trade too often and start getting hit with losses - it's just so difficult to watch many different trading pairs all the time and if one tries to constantly watch the screen one is tempted to close winning trades prematurely.
  • #25
  • Dec 13, 2013 6:48am Dec 13, 2013 6:48am
I personally prefer shortterm trading. (90% of my positions i dont hold more than one day)
The reason is simple, forex spot market is very dynamic and very hard to predict in medium term for me.
I personally prefer scalp a small profit with higher percent of probability and jump out from the market.
In my point of view is much more consistant to risk 0.001% of deposit on one scalp with target around 50 scalps a day than trade 2 positions with 2.5% risk per trade.
My blog: forex-scalping.com | Exponencial money management is the key!
  • #26
  • Dec 13, 2013 7:48am Dec 13, 2013 7:48am
Quoting ActionScalpr
I personally prefer shortterm trading. (90% of my positions i dont hold more than one day) The reason is simple, forex spot market is very dynamic and very hard to predict in medium term for me. I personally prefer scalp a small profit with higher percent of probability and jump out from the market. In my point of view is much more consistant to risk 0.001% of deposit on one scalp with target around 50 scalps a day than trade 2 positions with 2.5% risk per trade.
most people believe this to be true, the reality is that the different timeframes are just different scale, its fractal geometry... all timeframes move in the same manner.
tradewith60
  • #27
  • Dec 13, 2013 8:56am Dec 13, 2013 8:56am
hello everyone, my opinion: if you trade long term, you see large TF. If there are larger and larger TF. . what would you do???. My system allows all TF trading. For me, the big trade on TF, SL and TP significantly larger.
an illustration: Daily chart trend on a small wave compared to Wekly chart, trend charts Weekly on a small wave compared to the Monthly chart. It will last forever.

If TF is the largest: H1 or H4, so you will trade at TF M15 or M5?

you trade short term or long term does not matter, the essence is: why do you trade?.
Trading in the zone
  • #28
  • Edited 4:01pm Dec 13, 2013 9:00am | Edited 4:01pm
The thread might be heading a tad bit off the topic. Forget about Time Frames. It's opinions about holding a trade for a few minutes or for days, weeks, whatever....
SPC * Swollen PocketZ Crew!
  • #29
  • Dec 13, 2013 9:32am Dec 13, 2013 9:32am
I guess it all depends on how fast you want to donate money to your broker.

I have been trading long term while entering the market on a M5-M15 chart. I didn't like long term until I started opening two smaller positions and closed one out when I got scared and let the other ride it out. I used to open only one and sure enough it would almost always come back and I would close it for small profits or a loss. You can guess what happens after you sell the position, it rides the trend wave for 1000+ pips and you are left .

Like the guys said a couple posts ago, if you are long term you need to add positions otherwise you might as well trade short term.
  • #30
  • Dec 13, 2013 3:26pm Dec 13, 2013 3:26pm
Quoting NJaNeer
I guess it all depends on how fast you want to donate money to your broker. I have been trading long term while entering the market on a M5-M15 chart. I didn't like long term until I started opening two smaller positions and closed one out when I got scared and let the other ride it out. I used to open only one and sure enough it would almost always come back and I would close it for small profits or a loss. You can guess what happens after you sell the position, it rides the trend wave for 1000+ pips and you are left . Like the guys said...


I do really think that it's the optimal way to trade. Daily/15 min in combo. I wouldn't advise going lower time frame because you can be "fooled" whereas the 15 min gives one a much better perspective of intraday moves withing the trend. Thereafter absolutely agree about adding to existing positions on price pull backs.
  • #31
  • Dec 13, 2013 3:34pm Dec 13, 2013 3:34pm
Quoting 60minuteman
{quote} most people believe this to be true, the reality is that the different timeframes are just different scale, its fractal geometry... all timeframes move in the same manner.
The main difference is that if you are master of shorterm trading, you have much more opportunities in the market + once you are trading with exponencial money management its much more better

+ another difference is that if i have bad day i will make 35 bad trades and 15 with profit .. that mean that the day result is -20 trades, once i have good day i have 40 good trades and 10 bad, so the result of the day is + 30 good trades .. at all once i have good 6 months, im able to have 80% days with profit + this trading strategy have very low drawdowns
My blog: forex-scalping.com | Exponencial money management is the key!
  • #32
  • Dec 13, 2013 4:49pm Dec 13, 2013 4:49pm
life has no right or wrong, it all boils down to the 'degree'

how long is long? how short is short?

someone trade in 5m for 2 pips profit while paying 2 pips spread, ...... that's crazy for me

someone trade in weekly, aiming at 200 pips, but using merely 2% of his capital, stupid for me too ---- how many weeks do you have in your life? and doesn't he see that daily movements can do 200 pips too?

so you see, you need to evaluate yourself, which way suits you best, it is all about tweaking all numbers to a reasonable (for yourself) way.

in pipmeup's thread 'expectancy management', we get an impression (not concept or conclusion), a RR 1:1 with win% 66% is better than RR 2:1 with win% 50% (both share same expectancy). the reason seems due to the fact the former takes less time in real world (price doesn't have to travel for long, so time is saved). time itself seems the most ignored element in our newbie's trading world.
  • #33
  • Dec 13, 2013 5:06pm Dec 13, 2013 5:06pm
I like looking at the last weekly candlestick, then the daily, then the 4hr, then I to fade rallys on the 15m and 5m.
  • #34
  • Edited 11:44pm Dec 13, 2013 11:31pm | Edited 11:44pm
It doesn't matter much which TF to choose.

Once psychological issues are sorted out - whatever you like...

I prefer LTF - YES m5 with all the crazy stuff, maybe even m1 next year - and, you know... I don't care much as long as I like it an it works!

There's a misconception that very LTF is a mess and very HTF are too slow. It's just a myth [yep, unjustified one].You may choose gazillion of instruments on D1 [we are not limited to Forex for that matter, if it's not enough - all the other stuff is still trading] and go ahead with it or take one pair on M1 to tarde 2 hrs per day [hope nobody here's gonna claim LTF traders can't be profitable? - cause it's unwarranted bullshit].

If you know what to do and do it right you'll be doing good anyway...
The single most important factor is having control of your own life.
  • #35
  • Dec 14, 2013 12:48am Dec 14, 2013 12:48am
I trade daily (various pairs) and 30 seconds (only EU).

Scalping is much more difficult, but if you get it right, has great potentials.
Wherever you go, there you are.
  • #36
  • Dec 16, 2013 11:59am Dec 16, 2013 11:59am
Quoting milam
I trade daily (various pairs) and 30 seconds (only EU). Scalping is much more difficult, but if you get it right, has great potentials.
Agree with you
Good scalper have opportunities allmost every day and during night sleep well, because all positions are closed
My blog: forex-scalping.com | Exponencial money management is the key!
  • #37
  • Dec 16, 2013 2:54pm Dec 16, 2013 2:54pm
Quoting ActionScalpr
{quote} Agree with you Good scalper have opportunities allmost every day and during night sleep well, because all positions are closed


Love to know how you consistently make money with scalping - must need nerves of steel because I presume that you are using high leverage?
  • #38
  • Dec 16, 2013 3:14pm Dec 16, 2013 3:14pm
A short terms -- 95% 15m, 5% 1h. Trade only pairs with a spread less than 2 pips.

Reasons -- Targeting at small swings that come and go a few times a day. Usually TP=25pips SL=10pips fixed.

Why not longer terms? -- Since I lost my faith in the market structure (ie, technical analysis/price action patterns), I'm afraid of keeping a position more than 6 hours. I have very little idea about the future price 6 hours from now. Even when I have some idea about it, I don't want to put down my hard earned money on that filmy assumption.

This principle works quite great for me
  • #39
  • Dec 16, 2013 3:41pm Dec 16, 2013 3:41pm
I trade both long and short term although I prefer short term trading. I only really trade the longer term charts as I feel it keeps me current with the bigger picture and I trade better short term knowing the what is driving the markets.

The reason I prefer short term trading is very much about my personality. I get bored and impatient and I like to know if I am right or wrong relatively quickly.

So my reason has nothing to do with profitability and everything to do with my personality.
  • #40
  • Dec 16, 2013 11:30pm Dec 16, 2013 11:30pm
If a proper risk reward is in place time becomes irrelevant.
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