Friday, April 1, 2005

Choose what trading type really suits you

You should take time to honestly identify whether you are an aggressive or non-aggressive trader. If you view yourself as a non-aggressive trader, then a fast-paced, high-risk trading approach will never feel right and mostly likely will be too stressful and highly unproductive. The same holds true for the aggressive trader and a non-aggressive approach. In choosing a trading timeframe, consider whether you would enjoy the immediate, and sometimes instant, profit-and-loss feedback of short-term trading, or whether you would prefer to establish a position and see how it unfolds over a few days or weeks. Also consider how much time you have available. It should go without saying that short-term trading requires substantial time and complete attention. If you don't have the time to devote to the markets during trading hours, don not attempt to be a short-term trader. The short-term trader cannot afford any distraction from the markets.

typically, the shorter the timeframe, the higher the frequency of trades and the lower profit and risk per trade. Generally, as the timeframe lengthens to that of a swing or a position trader, the lower the frequency of trades and the higher profit and risk per trade. What is stressful for one person can be existing for another. There are no right or wrong answers here.

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