Is short-term trading more profitable than long-term trading?
I frequently here this question being brought up in a majority of trader meet ups in London.
Of course you can make money trading short term, but can this be used as a consistent catalyst to grow your account exponentially over a long period of time.
Irrational behaviors and cognitive biases cost you real money. (Short Term trading)
When analysing charts in Share Scope software it’s so much easier to make money on a long-term trade.
I imagine day trading to be very stressful? Trying to determine where price will end up in your favor. Making an important trading decision off the back of looking at volatile price movements on a 5 minute chart or as small as a 1 minute chart, those actions are extremely beyond me.
These flaws in human reasoning are studies academically in fields like economics, game theory and psychology in which plays an enormous part in trading the financial markets. When you make financial decisions according to a false interpretation of reality, you will end up with money-losing consequences (with high probability)
Playing the financial market to your tune. (Medium to Long term trading)
In light of all of the negative points expounded above, what can you do to help be consistent trading the financial markets?
Understanding the balance between risk and reward. If you want more returns from investment, you need to take more risk. Always choose a level risk that is acceptable to you and stick to your plan.
Trading higher time frames like the Daily and Weekly charts will help make stronger decisions on price direction and understanding current market conditions.
Cutting your losses short and let your profits ride is an enormous advantage to potentially outperforming hedge funds and the S&P 500 Index. Shane Scofield explains in greater detail on how using these simple steps can easily turn 4K into six figures.
Implementing these core instructions and never deviating from the original plan will give you a huge probability in becoming a successful trader. Trend trading medium to long term has discovered some of the successful wealthy traders in the financial markets like Richard Dennis (Turtle Trader)
I have never heard of a successful day trader? I think it’s another huge advantage point for the Scofield trading home study course, it focuses on longer term trades and simplifies the process and removes stress.