If investing in stock markets is so risky, why is that most of the retail investors
prefer short term trading to long - term investing?
Long term investing is one of the most important investing principles because
short term trading usually leads to poor long term performance.
It pays no attention to the intrinsic information about a company which is why it usually accounts for
only short term trades.
This market has shown a particular sensitivity to updates from the region and could result in some
nice short term trades.
I'm a relatively new trader and
found short term trading was causing me to give back all I made — half in stupid revenge trades!
Last, but certainly not the least, always aim for making money by long term investments and
not short term trading.
But
for shorter term trading it is important to keep losses small and move the money into another, hopefully better opportunity.
That is why it's better to focus on long term investing rather than
short term trading in an equities bull.
For instance, if you make 2 % gains by buying and selling 10 times in a year, you make 21.9 %, (1.02 ^ 10) You just have to own enough funds to transfer between in order to avoid
short term trading fees.
Timothy Sykes, on the other hand, looks at technical trading patterns of penny stocks to make very
short term trades on stocks.
Many of them first dabbled
into short term trading, speculating, derivatives and leverage (all of them being a manifestation of hyperbolic discounting in investing).
@JohnBensin, my point on HFT affecting
short term trading more than longer term trading is firstly due to short - term traders obviously having to make quicker decisions, and secondly and more importantly, being more susceptible to smaller changes in price when entering and exiting a trade.
Daryl Guppy on the other hand gives 6 methods for using the GMMA, but, the problem with GMMA for me is that it isn't oriented
toward short term trading.
Although BTC has been in a bear market since peaking in December, it still offers
numerous short term trading opportunities due to its high volatility.
Trend trading good For any currency or gold but if you find trend with RSI and SFX MCL filtered by Trend Reversal its will hep you more accurate forex trading result.For all scalping trader this indicator will help for
short term trading like 5 mints or m1 mints.Best broker for trading Hot forex with low spread in gold and also currency and also deposit and withdraw time best for trading.
Two years later I find out not only had they violated their agreement to
suspend short term trading in the account, they had tripled it.
Shorter time frames require faster analysis and action which is
why short term trading has a higher difficulty factor along with the potential for higher rewards.
Let me reiterate that I
think short term trading is no way to make a living, but does that example clear up my perspective on book size?
And totally agree about holding stuff over a year - in general I do this about 90 % of the time, with the other 10 % being
pre-planned short term trades.
Fund investments held in your account may be subject to management, low balance and
short term trading fees, as described in the offering materials.
For those engaged in the practices
of short term trading or market timing, here are some scenarios that may be preventing you from making headway with your investments.
Binary options trading using algorithmic platforms are better executed especially where clients
prefer short term trades.
We'd like to share with you a free chapter from TradingMarkets»
Short Term Trading Strategies That Work (2009) by Larry Connors and Cesar Alvarez.
Here are some of the reasons: - As a Payment System — Bitcoin is sent across the Internet quickly and cheaply without the need for costly 3rd parties As a Speculator —
short term trading as a revenue stream As a long term Investment — Bitcoin, a store of value, is on an upward trend with long - term fundamentals strong Using bitcoin as a natural hedge for local Fiat Currency...